Almost a quarter of small and medium-sized business (SME) owners (24 per cent) say they have missed out on a growth opportunity due to a lack of accessible finance, according to a study of 300 business owners by online lender borro.com.

Managers have turned to their personal funds to boost their businesses, with 57 per cent of SME owners having used their own money to inject capital into their business, with 17 per cent having asked friends and family for additional funds.

According to the study, two thirds (66 per cent) of SME owners lack confidence in their bank, and are unsure of whether their bank will lend to them. As a result only one in five (19 per cent) of SMEs have attempted to secure bank finance for their business in the past year and only a third (31 per cent) of this group have been successful in securing the finance in full.

Some 67 per cent of SME owners believe that banks should relax their lending criteria as those seeking finance are denied due to credit checks and not fitting the lenders’ profile.

Paul Aitken, CEO of borro says, ‘A dramatic shift is needed for smaller business owners to feel they can gain access to much-needed finance. While some of the initiatives introduced by the government may ease the capital battle that has taken place over the past year, there is still a demand for small business owners to access finance quickly.

‘This may be to ensure the business is able to take advantage of growth opportunities or address cash flow problems before they escalate. Our research demonstrates that this demand is not being met by banks and other traditional lenders.’