Accountants could help their clients with access to finance
New research shows that many small businesses in the UK are struggling to access the finance they need and a worrying one in five have been turned down for a business bank account.
Outdated and inefficient verification systems are preventing many small firms from getting the finance they need to survive and grow, according to a new study on the state of SME funding in the UK.
Research conducted by digital identity platform Umazi has found that nearly one-third of SMEs surveyed said they lacked access to funding. What's more, one in five have been turned down for a business bank account.
The findings show that almost a quarter of those who applied for financial support have been rejected or subjected to delays, despite submitting extensive documentation and investing significant time in the process. Half of these rejections were due to what lenders described as a lack of trading history or an insufficient track record.
Barriers facing small firms that apply for funding
The report highlights the antiquated systems still used for business verification; many SMEs are forced to submit the same documents repeatedly to different lenders, often by manually scanning and emailing PDFs or even mailing original paper documents. The research shows that more than 30% of SMEs have had to manually upload PDF documents, 31% have had to print and scan physical paperwork and 27% have been required to provide non-digital originals.
Among those whose applications were rejected, 20% received no explanation at all. Others were denied on the grounds of 'insufficient business history' (40%) or an inability to meet excessive documentation demands (10%).
Accountants are in a unique position to help their SME clients with funding requirements by ensuring timely filing of financial statements. In our article on credit scores, Paul Surtees from Capitalise explains how accountants can help clients review and revise their credit scores to help unlock access to additional funding.
Brought to you in conjunction with Atom Content Marketing. Offering practical advice to help small businesses succeed.
