85 per cent of small- and medium-sized enterprises (SMEs) that have applied or started an application for the coronavirus business interruption loan scheme (CBILS) are still in need of finance, research has found.
SME loan company Reparo Finance surveyed more than 200 senior decision makers from SMEs which had started a CBILS application.
The results revealed 65 per cent of businesses are considering looking at other forms of borrowing to address the impact of Covid-19, while 20 per cent already have.
39 per cent of SMEs are unsure about what the alternative finance options are and 16 per cent don’t think traditional lenders like high street banks will lend to them.
Just over half (52 per cent) of SMEs that have applied for a CBILS loan have been successful.
SMEs identified the main barriers to accessing the scheme as concerns around eligibility (23 per cent) and the application process being too time consuming (22 per cent).
“The research highlights that while support to date has had some success, much more support is needed to help ensure viable businesses have a future,” said Steve Richardson, sales director at Reparo Finance.
“The onus is on the government, banks and other financial partners such as loan companies, to help ensure they make every effort to help businesses stay afloat.
“It looks like alternative finance is going to play a key role in supporting businesses during these difficult times.
“It’s important that SMEs work with reputable finance partners to ensure they get the best possible advice and financial support.”
According to the latest data from the British Business Bank, as of 16 November, CBILS had delivered 77,909 loans worth £18.46bn.