Hauliers fear bank loan denial

By Andy Stewart
Photography Various

A recent survey has found almost four in 10 UK hauliers plan to seek funding for business growth during the next 12 months – but of that number, more than half are concerned their request for bank lending will be declined.

The quarterly Close Brothers survey, which canvasses the opinion of SME owners from a variety of sectors across the UK, also revealed many UK business owners are unsure as to how to fund plans for growth.

Over a third of transport bosses admitted their knowledge of funding sources other than the conventional could be better, while a further 15 per cent said they were completely unaware of any alternatives to bank lending.

“It is encouraging to see so many transport firms have plans to invest in their business,” said Close Brothers’ transport division MD, John Fawcett. “But to make these plans a reality, firms need to have the necessary working capital required for growth.

“For many, accessing finance can seem like a daunting task if they perceive banks aren’t willing to lend and applications are likely to be turned down. However, our findings would seem to suggest firms do not have all the information when it comes to financial planning, and many are failing to find appropriate alternatives to bank lending.”

The survey also highlighted access to cash is still a major challenge for many operators, with one in 10 claiming it is crippling their business.