Three quarters of mid-sized aerospace manufacturers feel their business is not a priority for their bank, according to research from SME lender Wyelands Bank.
The study of 305 UK mid-sized manufacturers turning over £10m-£300m revealed that nearly three quarters (71%) feel their business is not a priority for their bank.
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Respondents included industry leaders in the machinery and components, computers and electronics, electrical equipment, and oil and gas sectors.
More than three quarters (76%) said they were ‘given the run around’ by their bank and 67% said they feel like a ‘small fish’. Highlighting the problem, two fifths (41%) of UK mid-sized aerospace manufacturers responded that their bank would not accurately be able to describe what their organisation does.
Iain Hunter, chief executive officer of Wyelands Bank, said: “Our research shows that UK mid-sized aerospace manufacturers are struggling to access the funding they need to unlock growth. But when mid-sized businesses are responsible for so many jobs, it is important they can access the specific finance they need to survive and thrive.
“The challenge for many established banks will always be how to deliver personal service on an industrial scale. They try to base their service on a real understanding of their customer’s need. But it takes time and effort to understand a firm’s specific challenges and identify how to help them.”
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By GlobalDataThe research also showed that four fifths (82%) of UK mid-sized aerospace manufacturers have to speak to two or more people at their bank before they find the right person to help them. Two fifths (41%) have to speak to three or more people. A quarter (24%) said they cannot to talk to the people who make decisions about whether their business gets finance or not at their bank.
Each aerospace firm said that the difficulties raising finance meant they had missed out on an average of £17.7m in revenues and an average of 37 new contracts. These would have enabled each firm to create 41 new jobs.
In a report from May this year, it was revealed that 46% of UK mid-sized manufacturers have faced difficulties in raising finance.
