Small and medium owner-managed firms within the UK are currently avoiding taking on additional debt a new report has suggested.
The OMB, Owner-Managed Business, Barometer report, from the Bank of Cyprus UK, has shown that owner-managed businesses within the UK are taking on fewer debts, preferring alternative means of finance.
The report published showed that nearly 60% of owner-managed businesses had no requirement for additional finance in the last quarter. A third of business owners preferred to inject personal funds rather than seeking external funding. Only 12% of those surveyed were planning on applying for increased facilities from their bank within the next 12 months, with 11% citing funding as a ‘significant barrier to growth’ within their businesses.
There was also a negative outlook within the report towards applications for new facilities, only 24% of the respondents felt confident that they would get a positive response from lenders.
Tony Leahy, Bank of Cyprus UK, was saddened with the response they had received, citing a ‘disappointment’ at the lack of confidence many businesses have with their bank, and the support of adding additional facilities if needed.
