It wouldn’t be too bad to read 2 articles which make different points. But what is puzzling is that both articles interpret the same data. One says that the bank funded SME Finance Monitor which we understand is providing the The Department for Business, Innovation and Skills (BIS) with benchmark information has just found that rejection rates have increased substantially. On the other hand I just read that “majority of SMEs are successful in getting bank credit”.
So if two reputable interpreters of the official data can’t figure it out – let me help. Firstly, I wonder why any research needs to be carried out in this respect because there is already an abundance of anecdotal evidence – in other words this piece of research just confirms what everybody knows. And I am siding with the first interpretation.
By the way, the research also shows that confidence in the banks is weakening. That’s another piece of news which everybody knows. A while ago I likened applying for a loan with a boxing match. The client has to be prepared to go the whole fifteen rounds, has to be prepared to take a number of punches and to recover from a number of knock downs. The best strategy is therefore is to be fully prepared and to have the best possible team on your side before embarking on the journey to obtain a small business loan. There are simply no shortcuts possible.
So maybe I can make an offer to the Business Minister and suggest that we provide anecdotal evidence for free (and considering we are dealing with thousands of clients and professional introducers, we have sound feedback available) and the saving made by not incurring this expense can be used to reduce the national deficit!