Wales SME Access to Finance Report (British Business Bank)

Summary

• Credit cards were the most commonly used finance form in Wales, with 31% using business credit cards and 23% using personal credit cards.p.12
• Just under one in five Welsh smaller businesses (19%) reported experiencing barriers to accessing external finance.p.12
• 80% of Welsh smaller businesses perceived their cash flow position as positive.p.25
• Only 17% of smaller businesses in Wales reported requiring additional financing over the next 12 months, lower than in Scotland (47%) and Northern Ireland (42%).p.14
• Among businesses anticipating future finance needs, 58% intended to access business loans and 41% planned to access grants.p.12
• Capital expenditure was the leading intended use of future finance at 48%, followed by working capital at 39%.p.35

Key insights

1. Among Welsh businesses experiencing finance barriers, ability to obtain or repay finance was the most common issue cited at 46%.p.21
2. An increased cost of doing business was identified by 78% of negative cash flow respondents as the primary contributing factor.p.26
3. The majority (63%) of Welsh SMEs anticipating a need for additional financing required amounts at or below £50k.p.30
4. Equity finance usage was reported at 0% among surveyed SMEs located in North Wales.p.13
5. Confidence in securing required external finance stood at 62% for Wales-based smaller businesses.p.37
6. Just below half (48%) of Welsh SMEs expected stable performance over the next 12 months, while 30% expected business growth.p.39
7. Only 10% of businesses with one employee anticipated needing additional finance over the next year despite 26% considering their cash flow weak or critical.p.48