More than one-third (34 per cent) of owner-managers have been declined bank finance in the past three months, according to new research from business software provider Sage UK.

Of the 1,500 SMEs surveyed, 58 per cent did not feel they were given an attractive rate for their loan.


Robin Moore, product manager at Sage, says: ‘The decision on a loan can make or break a firm, so it is a concern that so many SMEs are being declined.’

‘It might feel like information overload, but by conducting and presenting research that proves why you need the funding, explains how much finance you need and how are you going to pay it back, you can address any concerns the bank may have before they arise.’

Another survey from investment group Investec finds that only 6 per cent of small businesses expect lending conditions to improve in the next 12 months.