In Complete Commercial Finance’s second annual Business Survey the biggest barrier to using external borrowing was a lack of knowledge over where to find the right finance (30%), and a belief that a loan would be a hassle to organise (30%) or too expensive (30%).

The survey also shows that, among those who do use external finance, cashflow is the primary reason for borrowing, cited by 40% of respondents. Government funding, including the Coronavirus Business Interruption Loan Scheme, Bounce Back Loan Scheme and Recovery Loan Scheme, forms the majority of external finance currently used by 52% of respondents and 80% of respondents have already started repaying these loans.

With the current economic crisis, Complete Commercial Finance is urging business owners to be proactive in organising finance to ensure their cashflow remains steady. “Businesses have navigated the recent pandemic, often by taking on a government-backed loan,” says Complete Commercial Finance’s Michael Moore.

“This has shown many first-time borrowers that finance can be a way to overcome challenging trading conditions. Yet the vast majority of those who completed our business survey say they find navigating commercial finance difficult and think it will be expensive. In fact, there are a wealth of funding options available including specialist finance for different sectors and individual business circumstances.

“We are undoubtedly looking at unsettled market conditions in the months ahead, and we strongly urge business owners to organise funding now to ensure they are prepared to weather the months ahead. Time spent organising finances now will ensure they are in the best position possible to trade smoothly and successfully.”