Access to affordable finance has emerged as the single biggest challenge facing small businesses, according to new research from Millbrook Business Finance.
The survey of more than 100 small and medium-sized enterprises found that 35% identified access to finance as their main obstacle, placing it well ahead of concerns over rising costs and wider economic uncertainty, both cited by 14%.
Late payments (13%), high taxes (11%), recruitment and retention (7%) and government regulation (6%) made up the remainder.
WHEN SUPPORT MATTERS MOST
When asked what measure would bring the greatest benefit, 38% of respondents said easier access to finance. Almost 30% called for lower operational costs, while 16% wanted faster client payments. More skilled staff (11%) and clearer guidance on regulation (6%) were ranked as lower priorities.
Justin Amos (pictured), managing director of Millbrook Business Finance, said the findings underline the pressure on cash flow and borrowing. “These figures speak plainly. Finance is the top concern. SMEs want support in two areas: keeping cash flowing in through faster payments and securing affordable borrowing,” he said.
He added that nearly a third of businesses identified reduced operational costs as the most valuable intervention, but that issues of funding and liquidity dominate. “Labour shortages and tax pressures matter, but they are not as urgent as funding, cost and cash flow,” he said.
CALL FOR ACTION
Amos urged finance providers to simplify loan terms, speed up approvals and offer fairer rates. He also advised business leaders to improve invoicing discipline, chase payments promptly, review contracts and consider early-payment incentives. For policymakers, he called for stability in regulation, targeted tax relief and practical help with energy and rent.
“SMEs are asking for practical, workable measures and not promises,” Amos said.
Millbrook, which launched five years ago, said it has already helped hundreds of small businesses secure the funding needed to support their growth plans.
