More Than a Quarter of UK Firms Claim Banks Won’t Lend to Them

A new study has revealed the challenges that businesses experience when trying to obtain financing from traditional lender...
business owner looking at laptop

Are you a UK business owner who is struggling to get financing from traditional lenders? If so, you are not alone. A new study reveals more than a quarter of UK businesses are facing challenges when trying to obtain funding from major banks.

The problem with traditional lending

According to a poll conducted by the Confederation of British Industry (CBI), more than a quarter of business executives said they had trouble obtaining financing from major banks. Additionally, 2 out of 5 people believe that banks’ lending practices have not evolved to meet contemporary company demands.

Some of the common issues that businesses encounter when applying for bank loans:

  • High interest rates and feeds.
  • Lack of transparency and flexibility.
  • Long and complex application process.
  • Low approval rates and limited loan amounts.
  • Strict eligibility criteria and collateral requirements.

These problems can hinder the growth and survival of businesses, especially in times of economic uncertainty and crisis.

The benefits of invoice finance

More than one-third of the firms polled believe alternative lenders make it simpler to acquire capital, and three-quarters say their company has profited from invoice finance. Faster transactions and business processes are cited by almost two-thirds of respondents as two major benefits of adopting non-traditional sources of funding.

Some of the advantages that invoice finance offers to businesses are:

  • Higher approval rates.
  • Competitive rates and low fees.
  • Quick and easy application process.
  • No collateral or credit score requirements.
  • Full control and visibility over your finances.

These benefits can help businesses overcome cash flow challenges, improve their liquidity, and invest in their growth and expansion.

The benefits of invoice finance

However, in the last 12 months, just 5% of small and medium-sized businesses have used invoice financing. This is partly due to the lack of awareness among business owners about invoice finance options. 

Many still perceive invoice finance as risky, expensive, or unreliable. However, this is not the case. Invoice finance is secure and transparent. Moreover, invoice finance is constantly evolving and adapting to the changing needs and preferences of businesses.

Apollo Business Finance is the fastest-growing invoice finance lender in the UK. We specialise in helping businesses unlock the value of their unpaid invoices and get paid faster and easier.

Ready to explore invoice finance?

If you are a UK business owner who is looking for a better way to finance your business, invoice finance is for you! We can save you from bank rejection and give you the funds you need to grow your business.

Book a call back with our team to get started.

About Us

Apollo Business Finance is one of the UK’s fastest-growing independent invoice finance lender. We provide businesses of all shapes and sizes with the cash flow support they need to grow, regardless of credit history or past hurdles.

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