I read with interest this morning that a study by the Federation of Small Businesses (FSB) has revealed that around 42% of all business applications from small businesses are being rejected.
Whilst I’m not surprised to see bank lending in the spotlight again it does worry me that 40% of small businesses looking for funding are being turned down.
We are told that banks are open for business and will support strong propositions and therefore can we conclude that over 40% of small businesses are too weak to survive? I’m not sure about that.
It does however, highlight the need to maintain a strong balance sheet and good business proposition in these turbulent times and look towards alternative funding sources like funding circles for development finance.
The FSB report can be accessed here