Northern Ireland SME Access to Finance Report (British Business Bank)

Summary

• Around 18% of smaller businesses in Northern Ireland reported experiencing barriers to accessing finance, led by concerns over the ability to obtain or repay finance (49%).p.13
• Positive cash flow was reported by 69% of Northern Ireland smaller businesses, while 55% of those with negative cash flow cited weak demand or a weak sales pipeline as the primary factor.p.13
• Over the next 12 months, 42% of smaller businesses anticipated requiring additional financing, with 75% seeking amounts of £50k or less.p.13
• Grants (45%) and business loans (43%) were the most anticipated types of finance sought among SMEs expecting to need funding.p.13
• Among businesses expecting to need external finance, 54% planned to deploy it for working capital and 52% for capital expenditure.p.13
• Looking ahead, 56% of Northern Ireland SMEs expected their business to grow over the next 12 months, the highest growth optimism among the UK Devolved Nations.p.13

Key insights

1. Northern Ireland had the lowest proportion of smaller businesses using external finance (56%) compared to Scotland (69%) and Wales (66%).p.15
2. External finance usage varied sub-regionally from 49% in the North West to 61% in the South region.p.18
3. Among businesses identifying access barriers, 49% cited the ability to obtain or repay finance, followed by lack of awareness or availability of options and support at 22%.p.24
4. Cash flow positivity ranged sub-regionally from 62% in Belfast to 77% in Fermanagh.p.28
5. North West SMEs showed the highest demand for future financing at 60%, compared to 34% in the South region.p.32
6. A substantial 75% of Northern Ireland businesses requiring finance sought £50k or less, compared to 58% in Scotland and 63% in Wales.p.34
7. Only 53% of Northern Ireland smaller businesses requiring future finance felt confident in their ability to secure it, the lowest confidence level among the UK Devolved Nations.p.42