Majority of SMEs who apply for funding from banks are approved

The SME Finance Monitor is a survey that looks at how available funding is for small and medium-sized enterprises.

It recently came to the conclusion that at the end of last year, the vast majority of businesses that apply for finance with banks were approved.

The survey showed that around 80 percent of applications for overdrafts were approved by banks, and around 60 percent of loan applications that were put forward were also approved.

This might sound atypical to the other news that has been circulating about the availability of finance for small businesses. It is important to take into account that the number of applications for finance has significantly dropped however. This is probably not because businesses do not want the finance, but because they believe they will be denied it. This seems to be a factor that is particularly affecting firms that have less than 10 employees.

It is expected that the situation is going to further improve in the coming months. The budget, which is shortly going to be announced by the Chancellor, is expected to outline a credit easing scheme by the government. Furthermore the new bank, Aldermore, is going to have a focus on funding small businesses with a good business model.

Peer-to-peer funding is also starting to establish itself. Funding Circle is a new company which works in a similar way to Zopa, however, unlike Zopa, Funding Circle allows money to be lent from investors directly to companies. The funding company allows investors to select which small companies they want to invest in, as well as allowing them to spread their investment over several small companies.

So far, the returns for investors have been excellent and have been at around eight percent, furthermore, the bad debt ratio for the small companies involved in the scheme is very low. The success of Funding Circle has caused a great deal of interest in the industry and it is expected that several banks are going to be establishing similar programs in the near future.

This type of funding is seen as particularly popular for small businesses that are operating in the technology sector. One of the reasons why the model seems to work so well is because investors believe lending to small companies is a good way to use money that they have spare.

The establishment of this kind of lending system is a testament to the validity of free-market economics. Many small companies are being refused funding from larger banking institutions, and they will later go onto receive from funding bodies such as Funding Circle.

As the success of Funding Circle has proven, most of these companies are very successful at paying back the amount they owe and using the investment wisely. In many ways it is a lesson to banks that the loans they are refusing to small companies are being refused unfairly.

A small business that has been seeing a great deal of success despite the economic downturn is the manufacturer of ready to cook meals, Charlie Bigham’s. The company was founded 15 years ago and was targeted towards people who were wanting to buy a ready meal that was not of a low quality. Using premium ingredients the company created a range of ready meals that can be quickly prepared but are healthy and delicious.

Initially, the company had a presence in small delicatessens, but since that time their products have been taken up by Sainsbury’s as well as Waitrose. The products are more expensive than the cheapest ready meals you can buy, but they are a premium product, and even in these times of economic hardship, people still think that they are worth purchasing over the cheaper alternatives.

The company attributed the vast majority of their success to the fact that people market their products by word-of-mouth. They have stated that advertising is very hard to do for small businesses and most of the growth has simply come because people want to tell their friends about the product.