One in five owners of small to medium-size enterprises (SMEs) have missed out on a growth opportunity because of a lack of accessible finance, new research shows.
Figures from Borro, a personal asset lender, also suggest that 40% of SMEs have been unsuccessful in securing funding from a bank, while 33% say they wouldn't bother approaching a bank in the first place.

Borro says two thirds of SME owners lack confidence in their bank and are unsure of whether it will lend to them. And a similar number believe banks should relax their lending criteria as those seeking finance are turned away because of credit checks and failure to fit the lender's profile.

The last 12 months have remained difficult for smaller businesses, says Borro, their main challenge - cited by 35% - being clients reducing budgets and reduced demand from customers. Other problems have been a decline in revenue (32%), a decline in profits and increasing supplier costs (29% each), customers paying later (28%) and difficulties with paying tax (8%).

Paul Aitken, CEO of Borro - 60% of whose customers are SME owners - commented: "A dramatic shift is needed for smaller business owners to feel they can gain access to much-needed finance. With the initiatives introduced by the Government still not easing the capital battle there is still a demand for small business owners to access finance quickly. This may be to ensure the business is able to take advantage of growth opportunities or address cash flow problems before they escalate. Our research demonstrates that this demand is not being met by banks and other traditional lenders."

Borro says it has seen a huge increase in the number of small business owners taking a loan against their personal assets. Over the last 12 months, the average loan amount for SME owners has been £24,000, borrowed over an average period of six months. The types of assets typically used by this customer base range from prestige cars to fine art and antiques.