92% of UK SMEs ‘treated unfairly’ by banks

92 per cent of small and medium sized enterprises (SMEs) say that they are treated unfairly by their bank, according to a new poll commissioned by Leonne International, the global private equity company focused solely on providing patient capital and investment into SMEs.

The survey, which quizzed 200 senior decision-makers within UK SMEs and was conducted by independent polling company Censuswide, also found that only 15 per cent say they would consider approaching their bank for financial support for investment this year.

The research also revealed that 19 per cent are planning to use private equity support to grow their business this year. Additionally, 19 per cent are planning to source budget to hire senior staff. This suggests a shift in UK business owners’ attitude towards the private equity sector.

Additionally, a quarter (25 per cent) want funding to increase their digital skills budget this year and 31 per cent of British workers want to increase cyber skills training this year which shows there is an acknowledgment of the digital and cyber skills gap in the UK.

The survey also found that 31 per cent of managers in London plan on increasing hiring of senior staff in 2020, the highest out of all major cities in the UK. This is compared to just 16 per cent in Manchester, 14 per cent in Birmingham and 9 per cent in Brighton.

Interestingly, 50 per cent of decision makers in SMBs in Edinburgh said they would consider seeking private equity investment to support growth this year – the highest out of all cities recorded. Second highest was decision makers from Leeds, at 30 per cent, and third highest were from London and Norwich, both at 25 per cent.

Michael Haston, CEO, Leonne International, said:

“SMEs are the lifeblood of the UK economy and it’s disturbing to hear that so many decision-makers feel they are poorly treated by their respective banks. After several years of political and economic uncertainty, now is the time for financial institutions to get behind businesses, providing necessary support to fuel growth, hiring and innovation.

Many business leaders have spent years taking a cautious approach to expansion, holding off spending until the result of last December’s election. 2020 is a year of opportunity for companies seeking new backing such as private equity support to boost expansion plans and allow entrepreneurs to reach their full potential.”