Access to finance is a key determinant for growth for medium-sized businesses. These businesses make a significant contribution to the economy, yet they have very different needs and challenges with regard to financing compared to micro and small firms.
This report presents the findings of a survey conducted by Ipsos MORI for the British Business Bank to investigate issues around the use of finance by medium-sized businesses and to identify lessons for the medium-sized businesses of tomorrow.
The survey reveals that medium-sized businesses are far more sophisticated in their approach to using financing. Instead of relying purely on traditional forms of bank finance, they use a wide range of financing sources depending on what they are seeking to fund.
This includes trade credit (59%) and leasing and hire purchase. The survey also reveals that most businesses (79%) do not seek third party advice when accessing finance. They are more likely to shop around when seeking a loan. Over 30% went to another bank or financial institution when seeking their loan.