Print sector SMEs are opting for asset finance ahead of traditional bank loans according to the results of the latest Close Brothers Business Barometer.
The quarterly survey, which canvasses the opinion of SME owners and managers throughout the UK, showed that 27% of firms in the print sector are opting to use asset finance, making it the most commonly used method of business funding.
18% of firms polled said they rely on a bank overdraft while only 11% prefer to use bank loans. The survey further found that as many as 16% of print firms owners are relying on personal finance to fund their business.
Managing director of the Print Division at Close Brothers Asset Finance, Basil Bannayi said, ‘It’s remarkable that so many in the industry are relying on personal finance to fund their business given that bank lending was traditionally the main source of finance for most companies and there are so many other viable ways to fund your business without drawing down on your own finances.
‘These figures seem to represent a change in attitudes towards finance across the print industry which appears to be moving away from traditional reliance on bank lending and shows many are seeking alternatives.’
The Business Barometer also revealed that over half of SMEs in the print industry consider accessing finance to be a challenge and almost one in 10 are not confident that they will be able to access the funds they need for investment in the next 12 months.
Mr Bannayi added, ‘It’s clear that access to finance is still one of the main challenges facing the industry. At Close Brothers Asset Finance, we have been working closely with print firms across the country to help raise awareness of alternatives and ensure that they are considering all the means of funding available to them.’
