One third of SMEs struggled to get finance in 2013
Approximately one in three small businesses in Europe struggled to get the full amount of finance they needed in 2013, research has found.
The “Access to Finance” report, taken by the European Commission and the European Central Bank found that some of the most popular problems SMEs faced when seeking bank finance included insufficient collateral, guarantees and high interest rates.
Companies with fewer than 10 employees saw the highest rejection rate for financing, while only 3% of companies with over 250 employees saw their loan applications rejected.
The report went on to say that only 5% of SMEs in the survey had used equity financing. This was because smaller businesses felt less confident discussing finances with equity investors or venture capitalists than they did with banks.
Finance and funding is an issue faced by many smaller businesses on a daily basis. This is why IRIS offer free payroll software, suitable for businesses with fewer than 10 employees, giving you one less cost to worry about.