Banks do not support their commercial funding requirements shows survey.

At a time when many small businesses need support from their banks to satisfy their commercial funding requirements, it is just not being provided.  In a survey of 500 SMEs conducted by YouGov on behalf of P2P finance specialist Nucleus Commercial Finance, over a quarter of businesses questioned (26%) did not feel supported by their banks.

Commercial Funding Requirements

Commercial Funding Requirements

This reaction was particularly noticeable in the category of businesses with less than £1m turnover, with 30% of those questioned claiming that they feel ‘unsupported’.

Yet many of these businesses were unaware or unsure that organisations such as Synergy Commercial Finance were ideally placed to provide the vital commercial funding requirements … and often at far more competitive rates and on more accommodating terms than those dictated by the banks.

The other very concerning fact that emerged from the survey was that many SMEs did not fully understand the notice periods on their overdrafts.  According to the survey around 40% believed that their banks had to give them at least a week’s notice, but the majority of those businesses questioned didn’t actually know what the notice period was.

In fact the most common answer to the question of overdraft notice was three months or over!

The truth is, however, that banks do not need to give any notice of withdrawal of overdraft facilities – although in many cases this is not made clear.  So for those businesses who rely on their overdraft to cover their commercial funding requirements on a month-by-month basis … then if the worst happens and their bank does ‘pull the plug’ then they could be in for a nasty shock.

The survey showed that banks are becoming more and more reluctant to provide this type of unsecured lending and SME companies being in general the least profitable are viewed as lowest priority.

According to Bank of England figures, SME lending via overdrafts has fallen by £8.5bn over the last four years!

Synergy, although agreeing that the situation is worrying for Britain’s SME companies, says that it is in an ideal position to provide the commercial funding requirements that can prove to be a lifeline for small businesses.

With direct access to the UK’s largest and most competitive funding panel (which includes Nucleus Commercial Finance) plus an unrivalled portfolio of whole of market finance products, Synergy can provide the desperately needed commercial funding requirements on conditions and rates that are generally far more beneficial to businesses than relying on expensive bank overdraft arrangements.

Small businesses, says Synergy, should speak to them to discuss how they can escape the pressures placed by their banks and enjoy far more beneficial opportunities to satisfy their on-going commercial funding requirements.  To learn more, without any obligation, call 01904 481 786.  You can also email: or you can send a message using the online form on this website’s Contact page.