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Why Are UK SMBs Still Hesitant to Take on Loans?

Despite improved access to finance, many UK small businesses remain hesitant to borrow, influenced by post-pandemic economic shifts and psychological factors.

Post-COVID Psychological Impact

Witnessing peers' insolvencies and debt struggles has instilled caution.

High Debt Ratios

Many SMEs are still repaying pandemic-related loans, limiting capacity for new borrowing.

Economic Uncertainty

Rising inflation and market volatility push businesses to self-fund or delay expansion.

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What Can Help?

  • Better financial literacy on borrowing benefits and risks.
  • More flexible, revenue-based lending models.
  • Trust-building via open finance and transparent lending offers

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Jamie Davies
Managing Director

As a founder of multiple businesses, Jamie believes that mindset, discipline and ambition are key drivers for success, both for his businesses and for his clients. 

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Disclaimer: Spark Finance Ltd (Registered office - 18 John Stow House, London, England, EC3A 7JB, Registered Number 10128297) helps UK firms access business finance. Spark is a credit broker, not a lender. Any quotes provided are for information purposes only and subject to status and separate lender terms and conditions. Applicants must be aged 18 and over.  Guarantees and Indemnities may be required.  Spark Finance may receive commission from lenders  which may vary depending on the lender, product, or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.

Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority in the UK (FRN 958123).