Have more confidence about lending, says BBA
Increasing the numbers of transport sector businesses confident about their chances of getting bank lending would boost UK growth, according to market researchers BDRC Continental. It claims businesses could expand, order more equipment or boost their spending power if they were more aware of their good prospects of getting bank finance. In light of these findings, the British Bankers Association (BBA) has launched a new campaign to let businesses know they are more likely to get bank finance than they think. In particular, it is highlighting that while only 37% of all SMEs planning to apply for finance believe they will get approval from their bank, actual approval rates are almost 67%.
BDRC Continental’s study has identified that while 16% of businesses in the transport sector intended to borrow to finance expansion only 11% actually ended up doing so, a difference of around 15,000 businesses. The organisation claims that if all of those 15,000 businesses applied for finance this could enable: 3,000 small and medium sized businesses to expand in the UK, 2,700 new orders for equipment and 6,500 businesses to boost their spending power.
The new campaign will work alongside the government, politicians, banks and business groups to spread the message. It will include online advertising specifically targeted at businesses with a turnover of less than £25m in the transport sector. The new Better Business Finance (BBF) website (www.betterbusinessfinance.co.uk) provides resources with impartial information relevant to transport businesses.