January 2017
Featured in this insight: Business & enterprise, Financial services
Survey finds SMEs are predicted to borrow more than £50 billion this year: According to a recent survey by Zurich, small and medium enterprises (SMEs) in Britain are intending on borrowing an average of £41,770 this year, which would represent an increase of around 22 per cent in comparison with 2016’s average of £34,375.
If the level of borrowing in 2017 is the same as it was in 2016, the total amount borrowed by British SMEs could survey above £50 billion.
Entitled ‘SME Risk Index ‘, the survey also revealed that of the business who expect to borrow money in 2017, approximately 38 per cent plan to borrow £100,000 or above, whereas 25 per cent expect to borrow more than £1,000,000.
The market research survey of more than 1,000 SME owners and decision makers suggested that in 2016, 12 per cent of the survey respondents had taken a loan out against their own commercial premises and 9 per cent had taken a loan out against their business’ equipment. A further 14 per cent said that they use business invoices and equity stakes.
Of the businesses which took out a loan last year, 12 per cent said that they secured their loan against their own residential property and 5 per cent took out a loan against their friends or family’s collateral. Perhaps worryingly, 27 per cent of those who took out a loan in 2016 did not know the source of their security.
Of the 30 per cent of respondents who revealed that they have taken out a loan in the last decade, 18 per cent said that they have taken out more than one loan and a further 5 per cent said that they have taken out five loans or more.
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