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Why UK SMEs May Say ‘No’ To Banks

Why UK SMEs May Say ‘No’ To Banks

While latest findings reveal an uptick in small business lending options among major banks, a recent survey from YouGov indicates that most small businesses aren’t getting the help they need from big banks to get working capital.

The survey reveals that U.K. small business owners aren’t getting the support they believe banks can provide, and taking into account the online business sentiment from eBay, the survey suggests that there is a “broken bond” with big banks in the region. This has led to the trend that’s been seen across the industry — which is SMEs leaving the bank behind for alternative financing options.

Tanya Lawler, Vice President of eBay in the U.K., said she believes as the economy bounces back, that more lending schemes need to be implemented to help connect businesses to capital to help grow their options — which means looking outside of banks. Regardless of the disconnect that may be occurring, she indicated that businesses remain upbeat about the next year. The survey showed that 65 percent of businesses didn’t believe the banks were helping SMEs as they should and 60 percent found it more difficult to secure funding from banks.

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