The survey of 300 owners and directors of small businesses also showed that a further third of small businesses (33%) would consider using their home as a guarantee if they couldn’t get any other kind of finance to help with issues such as cash flow problems, late payments from customers, tax bills and staff wages.
The analysis goes on to reveal that the number of small business owners considering using a secured loan to get the capital they need to continue growing is now at the same level as those considering using an unsecured loan (38%) and an overdraft facility from their bank (33%).
Paul Aitken, CEO of borro, comments:
“It’s surprising to see that as many small business owners would consider applying for a secured loan as would apply for an unsecured loan or an overdraft.
"This is a sign that as banks continue to make it hard to access unsecured lending facilities, so those that require property as security become the next thing to turn to.
With bank confidence still at an all-time low, small business owners have had to turn to their personal funds to boost their businesses.
"Over half (57%) of small business owners have used their personal funds to inject capital into their business and 17% have asked friends and family for additional funds.
It is, therefore, not surprising that over a third (34%) of borro customers that are introduced through IFAs, wealth managers and accountants use borro in order to facilitate a transaction for their business.
Paul Aitken continued:
“Our analysis shows that small business owners are looking further afield to get the funding they need. A quarter of small businesses (26%) said they have used or would consider using their personal assets such as cars, jewellery, fine art and antiques to secure a loan for their business.
"Intermediaries recognise that borro offers a valuable income opportunity alongside a transparent and safe form of borrowing for their client’s businesses.”
