A fifth of SMEs have missed at least one business opportunity in the last year through not having access to funding, according to a report from Aldermore, the specialist bank.
The Aldermore Future Attitudes report highlighted that 1.04m firms with under 250 employees have been affected by a lack of finance in the past 12 months.
The report said that medium-sized businesses with employee numbers between 50-249 were particularly affected, with nearly a third having been “significantly impacted” by the lack of available funds, amounting to an average impact of £112,508 per company.
28% of businesses with 10-49 employees, 15% of micro businesses with under 10 employees and 9% of sole traders had also missed business opportunities.
The report revealed that traditional bank lending, including overdrafts and credit cards, provides finance for 18% of SMEs, with alternative finance amounting to 14% of funding.
Carl D’Ammassa, group managing director, business finance at Aldermore, said: “With more than two fifths of SMEs saying that their key business priority for 2017 is achieving business growth, it is frustrating to see that so many firms are missing out on business opportunities due to a lack of appropriate funding.
“In our experience, UK SMEs have retained their ambitions to grow despite the uncertain economic environment, so it is vital that the finance industry gives them every chance to succeed.”