16% of SMEs will consider home loans this year
16% of small and medium-sized enterprises (SMEs) plan to finance their business with a property-backed loan this year, according to a new study.
According to the latest Nucleus Commercial Finance survey, 22% of SMEs intend to apply for a cash loan from the bank, while 21% will finance their business with personal savings and 19% will seek cash financing products.
Meanwhile, 91% of all SMEs said they had cash reserves, with the average SME holding £39,723.
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39% told Nucleus Commercial Finance that they plan to invest a third of their cash reserves in their business in 2022.
“It is encouraging to see that overall companies have significant cash reserves to invest for their future,” said Chirag Shah, managing director of Nucleus Commercial Finance.
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“Despite the ongoing challenges of the pandemic and ongoing supply chains, it is positive to plan ahead. However, there is still some way to go to understand the number of financing options available.
“Governments and industries must work together to highlight the options available and the benefits of using external finance can help businesses invest for the future.”
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