One in five small business loan applications were rejected last year.
One in five small business loan applications were rejected last year, research finds.
Almost a quarter of UK small and medium-sized businesses applied for a loan in the past year, according to the latest study from business software and services provider Sage UK.
The findings, which draw on more than 1,000 responses, also reveal that seven in ten small firms make use of their business plans to measure the performance of their company, but that only one in ten use their business plans to secure finance or funding.
Surprisingly, the research also identifies that under half of all firms (42 per cent) do not have a business plan at all.
Robin Moore, product manager for Sage’s small business division says, ‘Access to finance remains one of the greatest challenges facing small businesses today. However, there are a number of vital things owners can do to help themselves, such as ensuring they have a fully robust and up-to-date business plan in place.’
See also: How to get a business loan