Independent research published by SME loan company, Reparo Finance, highlights that the majority of SMEs are still struggling as a result of the pandemic, with 85% of SMEs that have applied or started an application for the Coronavirus Business Interruption Loan Scheme (CBILS) still in need of financial support.
While the CBILS has had some success, with just over half (52%) of SMEs that have applied for the CBILS securing funding, concerns around eligibility (23%) and the application process being too time consuming (22%) are the main barriers to SMEs accessing the scheme.
Steve Richardson, Sales Director at Reparo Finance, said “The research highlights that while support to date has had some success, much more support is needed to help ensure viable businesses have a future. The onus is on the Government, banks and other financial partners such as loan companies, to help ensure they make every effort to help businesses stay afloat.”
Many of the SMEs surveyed are looking at alternative finance to weather the COVID-19 downturn, with 85% of businesses having looked or are considering looking at other forms of funding to address the impact of COVID-19.
Concludes Steve Richardson: “It looks like alternative finance is going to play a key role in supporting businesses during these difficult times. It’s important that SMEs work with reputable finance partners to ensure they get the best possible advice and financial support.”
The research was carried out independently by Sapio Research in October 2020 with more than 200 senior decision makers from SMEs which had started a CBILS application. For more information on the research, or assistance in securing alternative funding, please visit reparofinance.co.uk/insights.