SMEs focus on funding growth

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Piles of coins

SME’s funding needs in 2015 will be shifting from refinancing to funding growth and expansion. At 8%, the number of businesses that think they might be needing funding has not changed since last year. On average, SMEs estimate they might need 320,000 euro in funding, which is substantially more than their needs over the past twelve months, when the average amount needed was 200,000 euro. These and other facts can be found in SME funding statistics (‘MKB-Financieringsbarometer’) published by ABN AMRO and the Society for Consumer Research (‘GfK’) today.

Funding growth

28% of businesses needing funds intend to use these funds to grow and expand their business. This percentage stood at 18% in 2013. The proportion of businesses that think they may need funding for refinancing purposes next year is 11%, compared with 22% last year.

Form of funding

SME’s most preferred form of funding is current account loans. 65% believe they will succeed in attaining this form of funding, while they also intend to consider other forms of funding than bank loans, e.g. lease arrangements (13%), private loans (21%) and equity (7%).

Limited knowledge of alternative forms of funding

For 66% of businesses, the Internet is the main source of finding the most appropriate form of funding. Most SMEs are quite knowledgeable when it comes to classic forms of funding such as bank loans or current account facilities. However, half of them are unaware that the bank can also help them find other forms of funding.

Positive expectations

Overall, SMEs’ expectations for 2015 are positive. More than 4 in 10 SME owners have already seen their sales grow in 2014 while the same number expects to see their sales grow next year. About one third of SME owners expect to see the level of their sales rise by at least 10% in 2015.

Download the complete report here (in Dutch).

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