16pc of SMEs to consider property-backed loans this year
16 per cent of small- and medium-sized enterprises (SMEs) plan to finance their business using a property-backed loan this year, new research has found.
According to the latest survey from Nucleus Commercial Finance, 22 per cent of SMEs intend to apply for a cash loan from the bank, while 21 per cent will fund their business with personal savings, and 19 per cent will seek out cash flow finance products.
Meanwhile, 91 per cent of all SMEs said that they have cash reserves, with the average SME holding £39,723.
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39 per cent told Nucleus Commercial Finance that they plan on investing a third of their cash reserves into their business in 2022.
“It is encouraging to see that on the whole businesses have significant cash reserves to invest for their futures,” said Chirag Shah, chief executive of Nucleus Commercial Finance.
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“Despite the ongoing challenges of the pandemic and ongoing supply chains, it is positive to be planning ahead. However, there is still a way to go in understanding the number of funding options available.
“Governments and industries need to work together to highlight what options are available and the benefits of using external finance can help businesses invest for the future.”
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