SMEs shun bank debt
The latest SME Finance Monitor conducted by BDRC shows Britain’s small businesses are turning their backs on bank debt, deepening concerns over productivity and economic growth. The survey revealed that almost half of businesses now describe themselves as “permanent non-borrowers”, up from one in three in 2012. In 2017 only one in 20 companies reported having made an application for a new loan or overdraft in the previous 12 months, BDRC found. This has more than halved since 2012. The survey also highlights a marked decline in the use of external finance over the past six years. Last year just one in six companies that are not using external finance said they would be willing to do so, down from a quarter in 2015.
Source: The Times (15/03/2018)