Last updated: 13 Feb 2024 10:30 Posted in:
A new platform to improve SMEs’ access to finance has been launched by the Federation of Small Businesses (FSB).
The move was prompted by FSB research which found that only 53% of SME credit applications were successful in the final three months of 2023, significantly down from a 62% success rate in the previous three months.
Of those whose credit application was successful, a third (33%) were offered an interest rate in excess of 11%, while the average rate offered was around 9.3%, up from 8.9% in the third quarter of 2023.
The most common reason for seeking finance in Q4 2023 was cashflow (55%), up from just 26% looking for finance for cashflow a year earlier, in Q4 2022, and up from 41% in Q3 2023.
The other main drivers of finance applications were to expand the business (19%) and to upgrade equipment (15%).
In a statement on its website the organisation said: “Against this backdrop of what appears to be a growing SME credit crunch, FSB – the UK’s largest business representative organisation – has teamed up with capitalise.com to support its members.
“A new FSB Funding Platform, provided by Capitalise, gives access to a wide range of lending options from more than 100 UK lenders. It also offers deep insights into business credit scores and the ability for small business owners to review and amend their scores, as well as checking the credit risk of key partners such as suppliers or clients.”
FSB Chief Commercial Officer, Caroline Lavelle, said: “It’s clear that access to affordable finance has become harder recently, and therefore we are very pleased to have been able to partner with Capitalise to provide our members with this comprehensive solution.
“Combining powerful credit insights and risk management tools along with such a wide range of lenders will be incredibly supportive for our members in what can be a difficult funding market to navigate.”
“A new FSB Funding Platform, provided by Capitalise, gives access to a wide range of lending options from more than 100 UK lenders."
Federation of Small Businesses, FSB