Business Finance acceptance rates higher than you think
A new report conducted by The British Bankers Association (BBA) suggests that British businesses are more likely to get accepted for business finance than they think. Fear of rejection when applying for business finance affects growth. However it is also limiting what could be a significant boost to the economy.
Businesses Fearful of Rejection don’t apply for Business Finance
The BBA surveyed 15,000 small to medium-sized enterprises. Only 37% thought they would be successful if they applied for business finance. The BBA says the fear of being rejected is a major contributing factor in the decision by 15,000 businesses not to apply.
67% are accepted
In reality, 67% of applications for business finance are successful. There are also new independent lenders who can help. One such company is Van Sales , who offer a status-free 12 month contract hire deal on the popular Volkswagen Transporter Kombi. That new van your business needs could be only a telephone call and a few documents away.
BBA Chief Executive Anthony Browne said, “We want to let business in the transport sector know that they are a lot more likely to get business finance than they think.
“This matters because more successful loan applications mean more orders for equipment, more new jobs and more plans to expand.”
“Small businesses are the engine room of the economy and the research we publish today shows how much stronger our recovery could be if more SMEs approached their banks for finance.”
Business Finance Applications are the key to UK Economy Growth
If the businesses that had decided not to go for finance changed their minds, 3,000 UK companies would expand, 2,700 orders for equipment would be made and 6,5000 enterprises would have their spending power increased.
The BBA’s intend to target businesses with a turnover of £25 million or less to let them know that funding is available. They will provide advice on lending options for business by region. They will also provide mentors to help businesses grow and the betterbusinessfinance.co.uk website will also provide companies with a means for starting a challenge to any rejection they might get.
Professor Russell Briggs OBE is an Independent Reviewer of the Appeals Process. He believes the BBA campaign is a welcome move for SMEs and said,
“Initiatives like this show that banks are working hard to make sure businesses know their right of appeal if their application is rejected.
“Entrepreneurs and SMEs should approach their bank knowing that they have the right to appeal any decision the bank takes.”
Almost Everyone has Funding Options for Vehicle Finance
James Hook, General Manager of www.swissvans.com said:
“Don’t be scared to pick up the telephone. We will work with you. “
“No matter what your financial situation, we do have options. Even if you are turned down for leasing or traditional business finance, in most cases we are able to offer you the Volkswagen Transporter Kombi deal. The non status finance deal is so flexible that should you find you can’t manage the repayments or if your business needs change, even during the 12 month agreement, you can hand the van back at any time with no penalty. Its also suitable for customers who would prefer to make their repayments in cash – there is a payment book available.
If you prefer to obtain business finance through your bank then we will get you the vehicle you need. We also have access to a massive range of lenders including our own non-status vehicles, great contract hire deals and some really low leasing rates which will save your business tax as well – its never been easier for us to get you in a new van.”