NEARLY 40 per cent of start-ups have had to use their owners’ personal savings to stay afloat over the last 18 months, according to a recent survey carried out by Hitachi Capital.
It said that start-ups, defined as firms that are less than five years old, were twice as likely to use their owners’ money than firms that have been trading for 10 years or more.
Hitachi’s survey of 1225 businesses also found that 15 per cent of start-up owners have turned to family members for loans over the last 18 months.
Hitachi Capital business finance managing director, Gavin Wraith-Carter, attributed the findings to the feeling among start-up and small business owners that the big banks will not give them the finance they need.
Most small business owners can identify with the challenges of securing funding for their businesses.
Whilst many business owners claim that it is difficult to obtain finance through traditional sources, it is important that businesses look to those alternative means of funding that are available.
Some examples of which are:
- Equity Crowdfunding
- Peer to Peer Lending
- Property Finance
- Invoice Finance
- Asset Based Lending
For more information on alternative funding, please do not hesitate to contact Dunion & Co. on 01782 828 733 or firstname.lastname@example.org.