Alternative finance keeping small businesses afloat

Published on

18% of small business owners have turned to alternative financial providers, other than their bank, to stay in business, according to research from More Th&gtn Business.

It also found that 58% of small business owners fear they will go out of business in the event of a double-dip recession.

Friends and family top the list of alternative sources with 10%, following by credit cards (7%) and loan companies (7%)

Across the regions it is small businesses based in the North that have been worst affected – they saw a 1.1% rise in costs during Q2 2010 and a 6% rise over the last year. Both the Midlands and Wales and Scottish regions endured a rise of 0.6% in the last quarter while businesses in the South fared best with just a 0.3% rise.

To save money, one third of small business owners have had to make cuts in and around the workplace. 47% have reduced the use of basic utilities such as water, gas and electricity, while 38% have cut back on staff refreshments including tea, coffee and biscuits. Travel expenses have also been cut by 38% of small business owners.

Mike Bowman, head of More Th&gtn Business said: “The continued pressure on costs means that SME cash flow is suffering and in a slow recovering economy

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Landbay unveils new holiday let deals

Landbay has launched a new suite of holiday let mortgages as the lender looks...

LendInvest strengthens development finance team

LendInvest has appointed Dan Lohn as relationship manager within its development finance team as...

Unbranded provides £13.75m office acquisition loan

Unbranded Finance has completed a £13.75m financing package to support IndigoScott’s purchase of two...

University students face loneliness epidemic but shared homes offer relief

British universities are grappling with what has been described as a loneliness epidemic, with...

The Suffolk raises LTV for JBSP and new build flats

Suffolk Building Society has increased the maximum loan-to-value on its joint borrower sole proprietor...

Latest publication

Other news

Landbay unveils new holiday let deals

Landbay has launched a new suite of holiday let mortgages as the lender looks...

LendInvest strengthens development finance team

LendInvest has appointed Dan Lohn as relationship manager within its development finance team as...

Unbranded provides £13.75m office acquisition loan

Unbranded Finance has completed a £13.75m financing package to support IndigoScott’s purchase of two...