One in seven SMEs (15%) seek finance due to rising costs

The study found that 15% of small and medium sized UK businesses expect to need a loan to support the running of their business. While just 1% of sole traders expect to have to go down this route, it rose notably to 16% among smaller businesses, employing between 50-249 staff.

Two thirds (66%) of UK SMEs are worried about the prospect of rising business costs over the next 12 months - and among small and medium sized businesses, this figure rises to 74%, with 29% of this group stating that they are 'very worrie'd about costs going up over the next year.

However, just 38% of businesses say they are confident about being able to access affordable finance in the next 12 months should they need it.

Chirag Shah, Founder and CEO of Nucleus Commercial Finance commented:

“UK SMEs have been through the wringer over the past couple of years. Covid pushed many to the brink and just as they are getting back on their feet, their costs are rising exponentially. With no energy price cap for businesses and the prospect of blackouts over winter, the year ahead could prove to be one of the toughest.

“But businesses are not on their own. Having gone through the challenges of Covid, finance providers and government must work together to ensure that those lessons are learnt to deliver the necessary support. Doing so means that the UK’s battle-hardened SMEs can lead the recovery on the other side.”