Cost of finance remains a challenge for Scots firms
Results from a new survey by the Scottish Government show that Scots firms are continuing to face challenges in accessing cash flow to grow their businesses.
The updated Access to Finance Survey for Small and Medium Sized Enterprises (SMEs) shows that, while fewer companies are being rejected outright for finance deals, showing a marked improvement in initial approval rates.
However, there continue to be issues with the cost of finance. The main experience for SMEs refinancing over the period from March 2009 was an increase in costs, experienced either as increased margins over the base rate or increased fees and charges for arrangement. The survey also shows that fewer firms are likely to secure 100% of the funding sought.
Finance Secretary John Swinney said "When we first published this survey last June it demonstrated the problems being faced by businesses applying for finance deals from their banks.
"While conditions appear to have eased to some degree and banks are more willing to lend to viable business propositions, the survey suggests that lower amounts of finance are being obtained and that costs are an issue for the majority of SMEs.
Source: Young Company Finance Scotland