Higher Confidence About Bank Lending Could Boost Growth Prospects Of 15,000 Transport Companies
Increasing the numbers of transport sector businesses confident about their chances of getting bank lending would boost UK growth, new research from BDRC Continental shows. Businesses could expand, order more equipment or boost their spending power if they were more aware of their good prospects of getting bank finance.
The BBA is today launching a new campaign to let businesses know they are a lot more likely to get bank finance than they think. It will highlight, in particular, that while only 37% of all SMEs planning to apply for finance believe they will get approval from their bank, actual approval rates are a lot higher at almost 67%.
The research has identified that while 16% of businesses in the transport sector intended to borrow to finance expansion only 11% actually ended up doing so – a difference of around 15,000 businesses. The research from the BDRC survey identifies a lack of confidence in their chances of success as one of the key reasons for this.
Increasing confidence around lending amongst transport sector businesses has the potential to boost the UK economy. Based on the figures for the UK overall, if all of those 15,000 businesses went ahead and applied for finance this could enable:
– 3,000 small and medium sized businesses expand in the UK
– 2,700 new orders for equipment
– 6,500 businesses to boost their spending power
Launching the new campaign BBA Chief Executive Anthony Browne said:
“We want to let businesses in the transport sector know that they are a lot more likely to get 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”.
The campaign will include online advertising specifically targeted at businesses with a turnover of less than £25million in the transport sector. The new Better Business Finance (BBF) website, www.betterbusinessfinance.co.uk, is a one-stop-shop resource with impartial information relevant to transport businesses.
The new campaign will work alongside the government, politicians, banks and business groups to spread the message that SMEs are a lot more likely to get finance than they think.
The campaign will also feature social media outreach, top tips for finance success, promote schemes such as business mentoring and showcase examples of businesses that have gone on to grow and prosper after securing a loan.