A new report shows that more than a quarter of UK businesses have problems accessing finance from “main banks”.
In Brief:
Embedded payments business Sonovate conducted research with business decision makers.
It follows an announcement from the FCA that lenders need to treat small businesses with more “fairness”.
26% of leaders had difficulties accessing finance, 38% say that banks don’t understand their business needs, and 41% think banks’ lending policies have not kept up with modern business needs.
What does this mean?
Concerns from the FCA are that banks don’t offer fair treatment to small businesses which includes suitable payment plans and supporting vulnerable customers. 35% of those surveyed said banks proview “no other service or support beyond lending”.
Sonovate says alternative finance is “perfectly positioned to plug this gap” so there are clearly still opportunities for FinTechs to support SMEs across the UK.
