A recent study has rated cities in the UK in terms of how successful they are for small to medium sized enterprises (SMEs) to receive funding approvals.
In the UK, small to medium sized enterprises (SMES) are often referred to as the backbone of the economy. However, in their initial stages of growth, accessing capital is of critical importance for continued success. From hospitality business loans to loans for nursing homes, fresh funding can help up-and-coming enterprises buy new equipment, expand to larger premises or simply ease pressure with consistent cashflow.
The report’s findings analysed approval rates in 20 prominent cities across the country and revealed a stark contrast. Although SMEs in major business centres like Liverpool and Bristol attracted higher funding volumes overall, their approval rates placed them at the bottom of the list. Bristol brought in £873,026, but only saw 16% of applications approved, while Liverpool brought in £690,580 worth of funding but only 17% of applications were approved. Bristol had £873,02 with just 16% approved.
Swindon led the study with a 36% approval rate for funding, with Milton Keynes and Birkenhead placing second and third with 21% and 20% respectively.
Funding experts agree that for early-stage companies, the business loan and funding landscape can often be uneven, with the pressure of debt often mounting and easy access to capital not always equally divided across different sectors.
However, according to a wider research report, start-up businesses are currently attracting the most capital. UK SMEs aged between zero and five years received more than £30 million in finance; this is over double what companies aged between 11 and 15 had managed to secure.
