More than half (55 per cent) of UK small and medium-sized enterprise (SME) owners have taken out a personal loan to fund their business, research by tech firm Codat shows.
The poll of 872 financial decision makers at British SMEs showed 47 per cent had faced difficulties in accessing external capital as it found business owners are increasingly resorting to use of personal loans.
Codat co-founder Alex Cardona said: “The small business credit landscape is not set up for businesses or lenders to succeed.”
“Lenders don’t have the necessary insight to make accurate decisions and the application process is so awful for SMEs that they’d often rather take out a personal loan to fund their business – or even make do without the cash they need.”
Read more at City A.M.
