"This hesitancy comes at a time when the UK needs a thriving SME sector to underpin the economy and we can’t ignore the long-term impact of underinvestment"
25% attributed their decision to ongoing Brexit uncertainty, 15% to company performance and 11% to a change in their business strategy.
Nucleus found the average mid-point application for additional finance was £35,000, meaning SMEs have held back injecting a total of £20bn in capital over the past 12 months.
For those business owners who have put plans on hold, the majority (88%) intend on trying to secure additional finance again.
Simon Willmett, finance director at Nucleus Commercial Finance, said: “In a climate of political and economic uncertainty, UK SMEs are becoming increasingly reluctant to borrow. As a result almost one million of them have held back from accessing additional capital, missing out on the opportunity to invest in future growth and maintain their competitive advantage.
“This hesitancy comes at a time when the UK needs a thriving SME sector to underpin the economy and we can’t ignore the long-term impact of underinvestment on the future of the UK’s SMEs. We believe it is the Government and finance industry’s responsibility to demonstrate the positive impact alternative finance can have for businesses. SMEs need to invest in the future to stay ahead of the curve and continue to play their pivotal role in our economy.”
