Half of the region’s small and medium sized businesses who applied for bank funding have been turned down, according to research by OnePoll, commissioned by small business funder Liberis.
As a result, 54 per cent suffered cash flow problems and 45 per cent missed an important business opportunity.
The decision impacted owners/managers personally too, with 45 per cent saying it increased their stress. Twenty seven per cent of respondents said it made them angry.
However, North West businesses are savvier about alternative funding options than the rest of the UK, with the exception of London and the West Midlands.
Fifty nine per cent sought alternative funding, compared to 55 per cent of businesses nationally. That said, a third of businesses who didn’t seek alternative finance sources said they assumed that alternative lenders would turn them down too because the bank had.
Commenting on the findings, Liberis CEO Paul Mildenstein said: “The economic crisis has created many new and innovative funding sources for small businesses and it’s great that North West businesses are accessing these. There are still a lot of businesses who aren’t so well informed however and we need to change that, so they can access the working capital they so need.”