Access to affordable finance has been identified as the single greatest obstacle facing the UK’s small and medium-sized enterprises (SMEs), outstripping concerns over costs, late payments and staff shortages, a survey by Millbrook Business Finance found.
When asked about their most pressing challenge, 35% of respondents cited difficulty securing reasonably priced borrowing.
Rising operational costs and wider economic uncertainty followed at 14% each, while 13% pointed to late payments, 11% to high taxes, 7% to staff recruitment or retention, and 6% to government regulation.
When asked what change would benefit them most, 38% said easier access to finance, ahead of lower operational costs (29%), faster client payments (16%), more skilled staff (11%) and clearer guidance on regulations (6%).
Justin Amos, managing director of Millbrook Business Finance, said: “Finance is the top concern. SMEs want support in two areas: keeping cash flowing in through faster payments and securing affordable borrowing.
“Costs come next. Almost 30% of businesses say reducing operational costs would bring the greatest benefit.
“Add economic uncertainty to that, and it’s no surprise firms are cautious about investment, hiring and planning.”
Amos urged finance providers to simplify loan terms, speed up approvals and offer fairer rates, while encouraging business owners to tighten invoicing discipline, chase payments promptly and consider early-payment incentives.
He also called on policymakers to provide stable regulation, targeted tax relief and practical help with energy and rent.
He concluded: “Since we set up Millbrook five years ago, we’ve helped hundreds of businesses tackle such issues and obtain the funding they needed to achieve their aims.
“SMEs are asking for practical, workable measures and not promises.”
