Budding business owners turn to payday loans
Mortgage Introducer, 30 Apr 2013
Britain's with aspirations of setting up their own business are being held back by the lack of funding for their start up ambitions, research from Amigo Loans reveals.
Just under half of Brits, 48%, dream of being their own boss but over two thirds are held back because they cannot raise the start-up costs.
James Benamor, founder and chief executive of Amigo Loans, said:
There is a huge amount of talent and ambition in the UK but budding entrepreneurs are being forced to put their dreams on hold as they're held back by banks that still won't give them a chance. The stress and sometimes humiliation of being turned down by their bank is leading SMEs to give up on their business ventures all together, and a growing number are being forced down the payday route.
People who want to start their own business need to be aware of the other options and alternative forms of credit available - whether that's through a guarantor loan, or a credit union.
The research found that 79% of those surveyed weren't aware of the lending options available to them.
Of those who are eager to go it alone, 68% think the biggest barrier would be the challenge to secure funding and 37% wouldn't know where to turn if a bank turned them down.
Meanwhile 40% are put off by the lack of information available to them on how best to set up a business. They're not alone in their confusion, a shocking 79% of current SME's2 are not aware of the funding options available to them and 21% believe lack of funding was their biggest barrier when setting up on their own
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