The approval rate for funding applications might be on the rise, but many SMEs are failing to take advantage, new research suggests.
According to a recent BDRC SME Finance Monitor, 85% of SME applications for a loan or overdraft resulted in a facility during the first six months of 2018.
This is an improvement on the 80% success rate reported in 2017.
The independent report is based on the findings of more than 4,500 interviews every quarter. It is used by banks, the government, Bank of England and industry bodies to assess trends with regards to SME access to finance.
However, despite this evidence of an improved access to finance, almost two-thirds of SMEs are not using external funding to support their business.
Just 34% of SMEs were using external finance in H1 2018, down from the 38% reported in 2017.
This is despite the inclusion of a range of new forms of funding in the data, including crowdfunding, asset based lending and single invoice finance.
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