Research from SME lender Wyelands Bank has shown that three fifths of mid-sized manufacturers feel their business is not a priority for their bank.
The research into 305 UK mid-sized manufacturers turning over £10m to £300m showed that half felt they were ‘given the run around’ by their bank, while 56% said their treatment made them feel like a ‘small fish’.
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Furthermore, half of UK mid-sized 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 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.”
The research also showed that three quarters (76%) of UK mid-sized manufacturers had to speak to two or more people at their bank before they find the right person to help them. Nearly a third (31%) had to speak to three or more people. Two fifths responded that they could not talk to the people who make decisions about whether their business gets finance or not at their bank.
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By GlobalDataAccording to Wyelands, each firm said that the difficulties raising finance meant they had missed out on an average of £20m in revenues and an average of 11 new contracts. These would have enabled each firm to create an average of ten new jobs.
Last month the majority of 1,184 SMEs (79%) surveyed by Hitachi Capital Business Finance found older SMEs are struggling with a range of factors affecting growth more than businesses under five years of age.
