Almost 60% of midsize businesses looking to borrow
Some 57% of finance directors are looking to borrow money for their midsize businesses within the next two years, according to research from Nucleus Commercial Finance.
Nucleus commissioned research agency Harries Interactive to interview 30 FDs at midsize companies and it found that within the next two years, 57% of FDs are planning on borrowing money for their businesses.
When it came to sourcing that money 70% said they would find their provider using advice from one of their existing financial suppliers whilst 13% would use a comparison website.
The 30 financial professionals were also questioned about their reasons for needing finance. Purchasing of assets and property finance topped the list, at 47% and 33% respectively.
Additionally the research revealed that the main concerns finance professionals have with bank loans – the primary response was cost with 47% of respondents citing this as their main concern. The second most popular concern was speed of access to funding.
Nucleus CEO Chirag Shah said: “This is not a surprise. Banks’ retail arms are more rigid than ever before, the result being more SMEs are denied business critical funding.”
Finally, when asked which factors would prove to be most influential when selecting funding for their businesses, FDs were unanimous with interest rates and repayment terms both getting 100% of the vote.