1. 2018 Business Finance Survey: SMEs
February 2019

2. Contents Background – page 3 Growth – page 4 EU Referendum – page 11
Awareness of Different Types of Finance – page 21
Finance Usage and Application – page 25
Perceptions of Raising Finance and Future Use – page 51
Equity Finance – page 57
Invoices and Late Payment – page 62
Summing Up – page 68

3. Background
In 2012, BIS commissioned a new survey exploring the stages SMEs go through when considering the need to raise external finance and the specific actions they take (1,500 SMEs interviewed by CATI)
The British Business Bank repeated the survey in 2014 (1,000 SMEs interviewed), in 2015 (1,608 SMEs), 2016 (1,535 SMEs) and in 2017 (2,070 SMEs)
2018 survey is based on 2,000 interviews with SMEs in September and October. Some new questions were added, but core questions remain the same enabling comparison over time
Statistically significant changes between the 2017 and 2018 surveys (at 95% confidence level) are identified by green arrows (increases) and red arrows (decreases)

4. Growth

5. Three in ten SMEs grew in the past 12 months
Growth of business turnover in past 12 months
Proportion of firms with 3 years of 20%+ growth
Has turnover grown 20+% for previous 2 years?
Yes No
Don’t know
Base = all SMEs in business 3+ years (n=1,927), Question B4. All SMEs grown 20+% past 12 months (n=200). Question B4/B5. (single code, prompted)

6. SME growth expectations in line with those seen in 2017
Expect to grow turnover in next 12 months
% Expect to grow moderately or better
36%
31%
48%
54%
67%
21% have exported in past 3 years
23% plan to export in next 3 years
Base = all SMEs (n=2,000 In 2018), no employees n=821, micro n=667, small n=311, medium n=201. Question B6 (single code, prompted). C1/C2.

7. % Expect to grow moderately or better
SMEs that have exported in the past three years have higher growth expectations
% Expect to grow moderately or better
Growth expectations among SMEs that have exported in past 3 years – by number of employees
Non-Exporters
Exporters
49%
46%
54%
59%
69%
32%
28%
47%
51%
66%
Base = all SMEs who exported in the past 3 years (n=506 exporters in 2018, 1487 non-exporters), no employees exporters n=162, non-exporters n=658; micro exporters n=162, non-exporters n=503; small exporters n=105, non-exporters n=205; medium exporters n=77, non-exporters n=121. Question B6 (single code, prompted).

8. % Expect to grow moderately or better
Similarly, those planning to export are more optimistic regarding growth potential
% Expect to grow moderately or better
Growth expectations among SMEs planning to export in next 3 years – by number of employees
53%
52%
54%
61%
68%
Exporters
31%
26%
46%
49%
66%
Non- Exporters
Base = all SMEs to plan to export in the next 3 years (n=531 in 2018, 1431 non-exporters), no employees exporters n=171, non-exporters n=632; micro exporters n=172, non-exporters n=485; small exporters n=107, non-exporters n=197; medium exporters n=81, non-exporters n=117. Question B6 (single code, prompted).

9. Small and medium-sized businesses more optimistic about trading conditions than micro businesses and sole traders
Expectations for the business’ trading conditions in the next 12 months
Better
20%
19%
23%
30%
31%
Base = all SMEs (n=2,000 in 2018) no employees n=821, micro n=667, small n=311, medium n=201. B7 (single code, prompted).

10. Obstacles in the next 12 months
Around one in ten view recruitment and cash flow / late payment as significant obstacles
Obstacles in the next 12 months
Moderate obstacle
Significant obstacle
Issues recruiting and retaining skilled staff
Cash flow or issues with late payment
Availability of relevant advice for your business
6-7
6% in 2018
6% in 2017
8+=
10% in 2018
9% in 2017
6-7
8% in 2018
9% in 2017
8+ =
9% in 2018
8% in 2017
6-7
5% in 2018
5% in 2017
8+ =
5% in 2018
6% in 2017
Base = all SMEs (n=2,000). Question B8 (single code, prompted)

11. EU Referendum

12. Grow more/less as result of leaving EU - by number of employees
SMEs are more pessimistic about the impact of leaving the EU on growth than in 2017, although the majority see no impact
Grow more/less as result of leaving EU - by number of employees
2017 More/Less
5%/22%
5%/21%
5%/25%
Base = all SMEs (n=2,000 In 2018, n=2,070 in 2017; no employees n=821 in 2018, n=855 in 2017 ; employees n=1,179 in 2018, n=1,215 in Question C6 (single code, prompted)

13. Under a fifth of SMEs have made changes as a result of leaving the EU
SMEs who have already made changes as result of leaving EU - by number of employees
17% have already made changes. More likely for those with employees (22% vs. 15% with no employees)
% prices of goods and services
% exports
% investment plans
% staff employed
Base = all SMEs (n=2,000 In 2018). Question C7 (multi code, prompted).

14. Around one in four plan to make changes, with more planning changes to investment and staff
SMEs who plan to make changes as result of leaving EU - by number of employees
27% plan to make changes. More likely for those with employees (32% vs. 26% with no employees)
% prices of goods and services
% exports
% investment plans
% staff employed
Base = all SMEs (n=2,000 In 2018). Question C8 (multi code, prompted).

15. Impact of leaving EU on sales by sector
Most SMEs have not seen any impact on sales so far but more expect sales will be affected
Impact of leaving EU on sales by sector
% Yes - already affected sales
% Yes - will affect sales in next 12 months
Total yes has/will affect sales:
32%
28%
30%
35%
37%
27%
Base = all SMEs (n=2,000 in 2018, Production n= 310, Construction n = 328, Distribution n=450, Business services n=598, Other services n=314). Question C11 (multi code, prompted)

16. Impact of leaving EU on sales by size (employees) and sector
Among SMEs expecting a change to sales, more expect a fall in sales in the next 12 months than in 2017
Impact of leaving EU on sales by size (employees) and sector
% Don’t know/Refused
% Increase sales
% Decrease sales
All
Micro
Small
Medium
No employees
Employees
Production
Construction
Distribution
Business Services
Other services
Base = all who already had or expect to have changes to sales (n=638 in 2018, Micro n=225, Small n=96, Medium n=59, No employees n=258, Employees n=380, Production n=101, Construction n= 105, Distribution n=158, Business services n=203, Other services n=71) Question C12 (single code, prompted). All SMEs (n=2000 In 2018).

17. Employers more likely to report scaling back investment in 2018
Changes to investment and staff as a result of leaving the EU – employers only
Changes to investment
Changes to staff
A greater amount
A smaller amount
23% said a greater amount and 54% a smaller amount in 2017
Base = All employers who have already made or plan to make changes to investment (n=122 in 2018) Question C9 (single code, prompted). All employers who have already made or plan to make changes to staff employed (n=164 in 2018) Question C10 (multi code, prompted)

18. Impact of leaving EU on sales
There is a rise in the share of those expecting a decrease in sales of over 20%
Impact of leaving EU on sales
Increase 2017/18
16%/8%
15%/10%
27%/5%
14%/7%
13%/12%
18%/4%
% Don’t know/Refused
Base = all SMEs that have or expect changes to sales as a result of leaving EU (n=638 In 2018, n=558 In 2017; Production n=101 in 2018, n=100 in 2017; Construction n= 105 in 2018, n= 51 in 2017; Distribution n=158 in 2018, n=159 in 2017; Business services n=203 in 2018, n=196 in 2017; Other services n=71 in 2018, n=49 in 2017). Question C12 (single code, prompted).

19. Impact of leaving EU on obtaining debt and equity
One-third of SMEs think obtaining equity or debt finance will be more difficult
Impact of leaving EU on obtaining debt and equity
More difficult/ easier
36%/3%
34%/3%
Debt (e.g. overdraft, bank loan)
Equity
Base = all SMEs (n=2,000 in 2018). Question C14 (single code, prompted)

20. Impact of leaving EU on exports
Among SMEs expecting a change to exports, there is rise in the share of those expecting a decrease in exports, with a sharp increase of ‘don’t knows’
Impact of leaving EU on exports
Decrease / increase
61% / 11%
Base = all SMEs who have already made or plan to make changes to exports as a result of leaving EU (n=124 in 2018). Question C13 (single code, prompted).

21. Awareness of Different Types of Finance

22. Awareness of forms of external finance 2016-2018
Encouragingly, awareness of almost all external forms of finance has increased significantly since 2017
Awareness of forms of external finance
Base = all SMEs (n=2,000 in 2018 n=2,070 in 2017/n=1,535 in 2016). Question A1 (multi code, prompted). Note (a) “Equity crowd funding platforms” in 2016

23. Aware of who to approach for forms of external finance 2016-2018
Awareness of who to approach for specific products has also increased significantly
Aware of who to approach for forms of external finance
Base = all SMEs (n=2,000 in 2018 n=2,070 in 2017/n=1,535 in 2016). Question A2 (multi code, prompted). Note (a) “Equity crowd funding platforms” in 2016

24. Aware of who to approach
Awareness of who to approach for crowdfunding and venture capital is higher in London than in many other regions
Aware of finance type
Aware of who to approach
Base = all SMEs (Not London n=1,750, London n=250 in 2018). Question A1 (multi code, prompted). Question A2 (multi code, prompted). Note credit cards, government/LA grants, trade finance and mezzanine finance not shown

25. Finance Usage and Application

26. Finance currently use and sought on last occasion
More SMEs are using credit card finance and leasing/hire purchase than in 2017
Finance currently use and sought on last occasion
More are using credit cards and loans from directors than in 2017
19% currently use loans or equity from directors, family or friends
Base = All SMEs (n=2000 in 2018) Question A6a_AA (multi code, prompted). All SMEs that sought finance in the last three years (n= 913 in 2018) A11b (multi code, unprompted). Those not shown less than 5% for both currently use or sought.

27. Personal savings are by far the most commonly used source of finance to establish a business
Finance used in establishing business, if started in last two years – top mentions
Base = all SMEs who started business in last two years (n=67 in 2018). Question A3 (multi code, prompted). Those not shown 1% or less.

28. Proportion seeking external finance in last three years is similar to 2017
Sought external finance in the previous three years - by employee size and sector
54% micro SMEs sought external finance in 2018, compared to 48% in 2017
Base = all SMEs (n=2,000 in 2018). A6a (single code, prompted)

29. Seeking finance from bank vs. another source
Credit cards and commercial mortgages are most commonly sought from banks
Seeking finance from bank vs. another source
% Bank
% Another source
% Don’t know/refused
Base = all SMEs who sought each form of non-bank finance (n=194 for credit cards/n=46 for commercial mortgage/n=57 for invoice finance or factoring/n=41 for loans from another individual/organisation/n=280 for leasing or hire purchase. Data not shown for finance categories with a base below 30. Question A6c (single code, prompted). “Don’t know” excluded from chart.

30. Main reason for seeking finance is still for working capital or purchasing fixed assets
Main reason for seeking finance last occasion in last three years
9% of SMEs sought external finance for expansion in 2018, compared to 5% in 2017
2016
2017
2018
Base = all SMEs that sought finance in the last 3 years (n=913 in 2018/n=932 in 2017/n=886 in 2016), all SMEs seeking finance for working capital (n=375 in 2018, n=388 in 2017) Question A13b (single code, prompted).

31. Capital is most commonly sought for the general running of the business and to cover a short term gap in funds
Most common reasons for seeking working capital
Most common reasons for seeking to re-finance were to keep business open or expand the business (39%), followed by an attractive offer of finance (27%)
Base = all SMEs seeking finance for working capital (n=375 in 2018, n=388 in 2017) Question A14 (multi code, prompted). Codes 1% or less not shown except ‘don’t know’ (8%). All SMEs seeking finance for refinancing (n=34 in 2018), Question A15 (multi code, prompted).

32. Majority of SMEs sought less than £25,000 finance on the last occasion
Amount of finance sought on last occasion by employee size
2018 median amount
£10,000
£8,000
£20,000
2017 median amount
£10,000
£6,000
£20,000
Base = all SMEs that sought finance in the last 3 years (n=913 in 2018), n=266 no employees, n=647 employees. Question A28/A29 (single code, prompted)

33. Researching finance types online now second most common step
Who spoke to first when finance need identified
36% went directly to main bank in 2017
10% researched online in 2017
Sole traders (43%) and those trading over 10 years (39%) more likely to go directly to their bank
Base = all SMEs that sought finance in the last 3 years (n=913 in 2018), n=932 in Question A19 (single code, unprompted). Those not shown 1% or less.

34. Sources of information that influenced decision
Banks and finance providers are the top influencer on the decision of who to approach
Sources of information that influenced decision
Base = all SMEs who sought finance in the last three years (n=913 in 2018), Question A16 and Question A18 (multi code, unprompted). All who have sought more than one source of information on decision on which type of finance to apply for (n=146 in 2018), Question A17 (single code, unprompted).

35. Four in ten businesses considered more than one provider in 2018
Number of providers considered
% considering more than one provider
40%
38%
35%
Base = all SMEs who sought finance in the last 3 years (n=913 in 2018 n=932 in 2017/n=886 in 2016). Question A22 (single code, unprompted)

36. Number of providers contacted 2012-2018
A majority of SMEs continue to contact one finance provider, although long-term trends suggest a positive shift to more providers being contacted
Number of providers contacted
Mean = 1.6
Mean = 1.7
Mean = 1.5
Mean = 1.7
Mean = 1.5
Mean = 1.7
Base = all SMEs that considered a provider of finance in the last 3 years* (n=848 in 2018 n=865 in 2017/n=886 in 2016/n=715 in 2015/n=325 in 2014/n=588 in 2012). Question A23 (single code, unprompted)
2018 – 2 or 3 providers =27% (effective base 411), 2017 = 24% (effective base 433). No significant difference.

37. Reasons for choosing provider
Having an existing relationship continues to be the most common reason for choosing providers - fewer say the decision relates to the likelihood of obtaining finance
Reasons for choosing provider
Having an existing provider continues to be the most common main reason (36%)
(7% in 2017)
Base = all SMEs that sought external finance in the last 3 years (n=913 in 2018). Question A20 (multi code, unprompted). Those not shown less than 2%. Question A21 (single code, prompted)

38. Having an established relationship is the most common reason for contacting only one provider
Reasons for only approaching one provider on last occasion – top mentions
Having a longstanding relationship was also the most common reason last year (55%)
Base = all SMEs that contacted only one provider (n=469 in 2018, n=469). Question A26 (multi code, unprompted). Those not shown 1% or less.

39. Was finance sought from any of the five largest UK banks
Half of SMEs contact providers other than the ‘big five’ banks when seeking finance
Was finance sought from any of the five largest UK banks
Banks only
Other finance providers
Don’t know
Don’t know
Employers
No employees
Contacted other finance providers
Only sought finance from one of the five main UK banks
Production
Construction
Distribution
Business services
Other services
Base = all SMEs (n=2,000 in 2018); employers n=647, no employees n=266; Production n=188, Construction n=153, Distribution n=198, Business services n=252, Other services n=122. A25 (single code, unprompted). Note question changed since 2017 to include Santander in ‘big five’ banks.

40. Whether successful in obtaining finance from first provider 2012-2018
Around nine in ten get all or almost all the finance required from first provider
Whether successful in obtaining finance from first provider
Offered any finance
2018 = 85%*
2017 = 86%
2016 = 90%
2015 = 86%
2014 = 90%
2012 = 81%
Base = all SMEs that sought finance in the last 3 years (n= 913 in 2018 /n=932 in 2017/ n=886 in 2016/n= 715 in 2015/n=325 in 2014/n=588 in 2012). Question A30 (single code, prompted). *Note question wording changes since 2016

41. Success rates similar to 2017 overall, despite a significant fall for micro businesses
Successful getting all finance – by size of business
2016
2017
2018
Base = all SMEs that sought external finance in the last 3 years (n=913 in 2018, n=932 in 2017/n=886 in 2016; 2018: no employees n=266/micros n=324/small n=187/medium n=136). Question A30 (single code, prompted)

42. SMEs in the distribution sector have become more successful in getting all finance since 2017 but other sectors remain consistent
Successful getting all finance – by sector of business
2016
2017
2018
Base = all SMEs that sought external finance in the last 3 years (n=932 in 2017/n=886 in 2016/n=715 in 2015; 2017: production n=158/construction n=127/distribution n=199/ business services n=291/other services n=155). Question A30 (single code, prompted)
Cant change titles

43. Slight increase in SMEs granted bank loans/mortgages for the tenor period requested
Whether bank loan/mortgage obtained was for the same tenor period requested
2018
2016
Base = All SMEs with bank loan or commercial mortgage as most recent finance type (n=143 in 2018/ n=152 in 2016). A33 (Single code, prompted)

44. Types of security required
For around a quarter of SMEs security was required for the loan, most commonly director or personal guarantee
Whether security was required for loan, types of security required and value as share of total loan
Was security required?
Types of security required
The most common value for security as a percentage of the total loan provided was 25% or less (47%). Only 15% said it was 76%-100% of the value, and 8% over 100% of the value
Base = all SMEs offered loan in their recent application (n=116 in 2018) Question A35b. All SMEs providing security for loan (n=43) Question A35c (multi-code, prompted). All SMEs providing security for loan (n=43), Question A35d (single code, prompted).

45. What was done next if not offered full amount
Increase in those giving up or cancelling plans when not receiving all finance required
What was done next if not offered full amount
49% either gave up, cancelled plans or put plans for finance on hold
Base = offered smaller amount/worse terms/turned down/didn’t accept finance (n= 87 in 2018). Question A32 (single code, prompted).

46. Applications taking too long overtakes poor customer experience as the top reason for dissatisfaction
Experience of raising finance vs. expectations
Why worse than expected 2018
Better/ worse
19%/17%
26%/13%
19%/15%
Base = all SMEs that sought finance in the last 3 years (n= 913 in 2018, n=932 in 2017/n=886 in 2016), Base = all for whom experience of raising finance was worse than expected (n=130 in 2018). Question A37 (single code, unprompted), A38 (multi code, unprompted). Top five answers shown only for why it was worse.

47. Why worse than expected
Experience of raising finance from big five banks more likely than other finance providers not to meet expectations
Experience of raising finance vs. expectations Big five banks vs. other providers
Why worse than expected
Big five banks only
Other finance providers
Better/ worse
15%/21%
24%/13%
Base = all SMEs that sought finance in the last 3 years from big five bank (n= 378 in 2018) or other provider (n=510 in 2018). Base = all for whom experience of raising finance was worse than expected and sought finance from big five bank (n=70 in 2018) or other provider (n=46 in 2018). Question A37 (single code, prompted), A38 (multi code, unprompted).

48. Sought external advice when applying for finance on last occasion
18% of SMEs sought external advice, with half of these going to their accountant
Sought external advice when applying for finance on last occasion
81% sought no advice (same as 2017)
Base = all SMEs that sought finance in the last 3 years (n=913 in 2018, n=932 in 2017). A36 (multi code, unprompted)

49. Proportion of SMEs using advice when seeking finance generally in line with 2017 but falls significantly for businesses with employees
Sought external advice when applying for finance on last occasion* – by employee size
2016
2017
2018
Base = all SMEs that sought finance in the last 3 years (n=913 in 2018/n=932 in 2017/2016=886). A36 (multi code, unprompted). *Note this is a net variable generated from use of at least one source of advice on the last occasion.

50. More SMEs are ‘very likely’ to seek external advice if they needed finance in the future compared with 2017
Likelihood of seeking external advice if had difficulties obtaining finance
Half of those likely to seek advice say they are likely to pay for independent advice to help them obtain this finance (47%)
Likely
47%
Unlikely 50%
Sole traders are less likely to seek external advice than SMEs with employees (52% unlikely vs. 46%)
Base = all SMEs (n=2,000 in 2018); Question B3ii (single code, prompted). Base: All SMEs likely to seek external advice for external finance in the future (n=956); Question D6 in 2017.

51. Perceptions of Raising Finance and Future Use

52. Confidence in ability to raise finance
Improvement in confidence in assessing finance products offered by other providers
Confidence in ability to raise finance
Confident 2017/2018
67%/69%
49%/54%
50%/54%
Base = all SMEs (n=2,000 in 2018). Question A4 (single code, prompted).

53. Views on information provision, finance providers and banks
Around two-thirds are confident they know where to obtain information on the types of finance and specific providers available
Views on information provision, finance providers and banks
Base = all SMEs (n=2,000 in 2018). A5 (single code, prompted)

54. Around three in ten SMEs still see moving banks as difficult
Ease of moving banks
Easy/ difficult
56%/29%
Ease of moving business banking needs to another bank
Base = all SMEs (n=2,000 in 2018). Question A5b (single code, prompted)

55. Discouragement and reasons for not applying for finance
Avoiding additional debt continues to be the most common reason for not applying for finance
Discouragement and reasons for not applying for finance
Avoiding additional debt continues to be the most common main reason (23%), followed by fear of rejection (10%)
2017
6% reported they wanted to apply for external finance in the last 12 months but something stopped them
(5% in 2017)
2018
Base = all SMEs (n=2,000 in 2018) Question B1 (single code prompted). Base = All who wanted finance in last 12 months but did not apply (n=102 in 2018, n=85 in 2017) Question B2 (multi code, prompted). Note B2 codes at 5% or below not shown. Question B3 (single code, prompted)

56. Forms of finance considering applying for in next 3 months
15% expect to apply for at least one external finance product in the next three months
Forms of finance considering applying for in next 3 months
83% do not expect to apply for any finance in the next three months
Fewer SMEs are seeking credit card finance than in 2017
(4% in 2017)
Base = all SMEs (n=2,000 in 2018, n=2,070 in 2017). B3i (multi code, prompted). Note: Trust/charity funding, Invoice finance or factoring (asset based), commercial mortgage, equity finance and peer to peer lending all 1%.

57. Equity Finance

58. Considering or have applied for equity finance
Three-quarters of those not using equity finance have not considered it
Considering or have applied for equity finance
75% of firms aware of, but not currently using equity, have neither considered nor would consider using it
Base = all SMEs aware of alternative finance forms and not using/sought (n=1,182 for equity finance in 2018, n=1,245 in 2017). Question A6d_A (multi code, prompted). Note (a) new code for Answer codes changed in 2018 questionnaire.

59. Where sought equity finance from
Family members/friends most common source of equity, though over half used other sources
Where sought equity finance from
Base = all SMEs that have sought equity finance in the last 3 years (n=96 in 2018). Question A7 (multi code, prompted)

60. Barriers to equity finance
Giving up control and finding a suitable investor are the most common barriers
Barriers to equity finance
Base = All who applied for or have considered raising equity finance (n=403 in 2018). Question A9a (multi code, prompted). Note: different base to 2017.

61. Views of those who've not considered equity finance
Ownership structure is most common reason for not considering equity finance
Views of those who've not considered equity finance
Base = all SMEs that are aware of equity and did not seek equity (n=868 in 2018) Question A9b (multi code, prompted). Note: different base to 2017.

62. Invoices and Late Payment

63. Giving and receiving trade credit
Around a third of SMEs offer trade credit to customers or receive trade credit
Giving and receiving trade credit
Give trade credit to customers
Receive trade credit
Base = all SMEs that give their customers trade credit (n=1,126 in 2018), all SMEs (n=2,000 in 2018). Question D1 (single code, prompted).

64. One-quarter of firms with B2B sales report all payments are received on time
What percentage of payments, if any, from your business customers are typically late (i.e. beyond the terms of the invoice)?
Base: All SMEs with at least some B2B sales (n=1,283 in 2018) Question D8 (single code, prompted). New question in 2018.

65. Average delay in payment
At least two in five SMEs report average delay in payment of at least one month for invoices and trade credit
Average delay in payment
Normal invoice (among SMEs reporting late payment of invoices by business customers
Trade credit (among all SMEs who offer trade credit)
Base = all SMEs reporting late payment of invoices by business customers (n=1,017 in 2018), Question D9a. All SMEs who offer trade credit (n=457 in 2018) Question D9b (single code, prompted). Not asked in 2017.

66. Impact of late payments on the business
Cash flow issues are the most commonly suffered consequence of late payments, being experienced by a third of SMEs reporting late payments
Impact of late payments on the business
Mentions by category
51% report no impacts on the business of late payment
Top Mentions
Base: All SMEs reporting late payment of invoices by business customers (n=1,017) Question D10 (multi code, unprompted). New question in 2018.

67. Actions taken to try and minimise the impact of late payments
Chasing debtors by phone or is by far the most common action taken in response to late payments, whilst a quarter take up preventative measures
Actions taken to try and minimise the impact of late payments
Mentions by category
Top Mentions
Base: All SMEs for whom a late payment has had an impact (n=495 in 2018) Question D11 (multi code, unprompted). New question in 2018.

68. Summing Up

69. Summary - 1
Growth of business turnover and expectations for future trading conditions remain broadly in line with those seen in 2017
There is a small but significant jump in the percentage of SMEs aiming to grow substantially in 2019
Compared with 2017, more firms report leaving the EU has negatively impacted growth and sales expectations and also anticipate difficulties in obtaining debt and equity
A majority (62%) say that Brexit has not and do not expect it to have an effect on sales in the next 12 months
Around a third (32%) report that Brexit has affected or will affect sales, and of these, 80% report a negative effect

70. Summary - 2
Encouragingly, awareness of almost all forms of finance, and specific providers, has increased since 2017
More SMEs are using credit card finance and loans from directors than in 2017, suggesting that personal finance continues to play a strong role in SMEs financial repertoire
The proportion of firms seeking external finance are generally in line with those seen in 2017, although there is an increase in the number of micro organisations doing so

71. Summary - 3
A majority of SMEs continue to consider one finance provider, although long-term trends do suggest some positive shifts towards SMEs considering a greater number of providers
Encouragingly, more SMEs say they are very likely to seek external advice if they experience difficulties obtaining finance than in 2017 though less than half, of these, are likely to pay for it
Among those aware of equity finance, there is a significant increase in the proportion of SMEs who have considered it but not applied for it
Three top barriers to equity are: reluctance to give up control of the firm, difficulties finding an investor who shares the firm’s aims and objectives, and the perceived short-term focus of investors

72. Summary - 4
Confidence in the ability to raise finance, as well as views on banks and finance in general, generally remain in line with 2017 levels
There appears to be a decline in distrust towards providers as a reason for not applying for finance, while debt aversion remains the top reason for discouragement
SMEs with B2B sales report just 25% of payments are received on time. Firms report two in five late payments received are one month or more in arrears

73. Summary - 5
Whilst over half report no negative impact on the business of late payments, the most common is cash flow issues (reported by a third of SMEs)
In terms of actions taken to minimise the impact of later payments, debt recovery appears to take precedence over preventative measures (41% and 26% respectively among SMEs for whom a late payment has had an impact)