1、www.british-business-bank.co.uk britishbbank 2017 Business Finance Survey: SMEs A report by Ipsos MORI to the British Business Bank February 2018 www.british-business-bank.co.ukSlide 2 Contents Background and methodology slide 3 Awareness of different types of finance slide 5 Finance use and applica

2、tion slide 10 Alternative finance slide 34 Trade credit slide 39 Perceptions of raising finance and future use slide 43 Growth slide 49 Leaving the EU slide 53 Summing up slide 61 www.british-business-bank.co.ukSlide 3 Survey Methodology 2,070 CATI interviews conducted between 30thAugust and 7th Nov

3、ember 2017 with average interview length of 25 minutes SMEs defined as businesses having 0 to 249 employees Quotas set by employment size, sector and region Interviews with person responsible for managing business finances Data weighted to BEISs Business Population Estimates 2016 (BPE) by size and s

4、ector: 855 with no employees interviewed (weighted to 76%) 700 micros (1-9) interviewed (weighted to 20%) 331 small (10-49) interviewed (weighted to 4%) 184 medium (50-249) interviewed (weighted to 1%) Findings labelled by an asterisk mean less than half a per cent but not zero www.british-business-

5、bank.co.ukSlide 4 Background In 2012, BIS commissioned a new survey exploring the stages SMEs go through when considering the need to raise external finance and the specific actions they take (1,500 SMEs interviewed by CATI) Survey was repeated in 2014 (1,000 SMEs interviewed), in 2015 (1,608 SMEs)

6、and 2016 (1,535 SMEs) 2017 survey is based on 2,070 interviews with SMEs. Some new questions were added, but core questions remain the same enabling comparison over time Statistically significant changes between the 2016 and 2017 surveys (at 95% confidence level) are identified by circles (increases

7、) and squares (decreases) Awareness of different types of finance www.british-business-bank.co.ukSlide 6 86% 62% 60% 53% 47% 32% 88% 64% 51% 53% 45% 38% 86% 60% 49% 54% 40% 38% 85% 55% 32% 53% 35% 36% 85% 53% 13% 52% 24% 31% Leasing/hire purchase Venture capitalists Crowdfunding platforms (a) Invoic

8、e finance (IF)/Factoring Peer-to-peer (P2P) lending platforms Business angels 2017 2016 2015 2014 2012 Awareness of crowdfunding continues to grow Base = all SMEs (n=2,070 in 2017/n=1,535 in 2016/ n=1,608 in 2015/ n=1,000 in 2014/ n=1,508 in 2012). Question A1 (multi code, prompted). Note credit car

9、ds, government/LA grants, trade finance and mezzanine finance not shown (a)crowd sourcing in 2012-14; equity crowd funding platforms in 2015-16 Awareness of forms of external finance 2012-2017 www.british-business-bank.co.ukSlide 7 46% 25% 25% 17% 16% 10% 56% 29% 22% 19% 18% 12% 55% 32% 26% 22% 19%

10、18% Leasing/hire purchase IF/Factoring Crowdfunding (a) Venture capitalists P2P lending Business angels 2017 2016 2015 Awareness of who to approach is plateauing, and for some products it has fallen Base = all SMEs (n=2,070 in 2017/n=1,535 in 2016/n=1,608 in 2015/n=1,000 in 2014/n=1,508 in 2012). Qu

11、estion A2 (multi code, prompted).Note credit cards, government/LA grants, trade finance and mezzanine finance not shown Aware of who to approach for forms of external finance 2015-2017 (a)crowd sourcing in 2012-14; equity crowd funding platforms in 2015-16 www.british-business-bank.co.ukSlide 8 38%

12、20% 20% 24% 27% 13% 10% 49% 22% 17% 25% 25% 17% 10% Leasing/hire purchase Equity Venture capitalists Crowdfunding (a) IF/Factoring P2P lending Business angels London Rest of UK Awareness of leasing/HP higher outside of London; awareness of venture capitalists higher in London Base = all SMEs (n=2,07

13、0 in 2017/n=1,535 in 2016/n=1,608 in 2015/n=1,000 in 2014/n=1,508 in 2012). Question A1 (multi code, prompted). Question A2 (multi code, prompted).Note credit cards, government/LA grants, trade finance and mezzanine finance not shown Aware of who to approach (a)crowd sourcing in 2012-14; equity crow

14、d funding platforms in 2015-16 78% 66% 69% 57% 55% 51% 32% 88% 63% 60% 60% 53% 46% 32% Leasing/hire purchase Equity Venture capitalists Crowdfunding (a) IF/Factoring P2P lending Business angels Aware of finance type www.british-business-bank.co.ukSlide 9 Awareness of finance products and providers b

15、y region Awareness of leasing and hire purchase is lowest in London (78%) and highest in the North West (92%), South East (91%), Scotland and Wales (both 90%). Awareness of crowdfunding is highest in the East of England (69%), as is awareness of specific providers of crowdfunding (34%). Finance usag

16、e and application www.british-business-bank.co.ukSlide 11 Medium-sized businesses more likely to have sought external finance, also most common in production Base = all SMEs (n=2,070 in 2017). A6a (single code, prompted) 39% 35% 48% 65% 77% All No employees Micro (1-9) Small (10-49) Medium (50-249)

17、Sought external finance in the previous three years - by employee size and sector 39% 48% 43% 39% 36% 37% All Production Construction Distribution Business services Other services www.british-business-bank.co.ukSlide 12 Overdrafts and credit cards most common types of finance sought Base = all SMEs

18、that sought finance in the last three years (n=932 in 2017). Question A6a (multi code, prompted), A11b (multi code, unprompted). Those not shown less than half a per cent. Products sought in previous three years 40% 35% 29% 25% 11% 10% 9% 6% 6% 5% 4% 4% 4% 3% 2% 2% 1% 1% * 4% 17% 15% 20% 14% 3% 4% 4

19、% 2% * 2% 2% 1% 3% 1% 1% 1% * * 0% 6% Bank overdraft Credit card finance Leasing/hire purchase Bank loan Loans from directors Family/friend loan Government/Local government grants Private lending/finance company Equity from directors or friends or family Trust/Charity funding Commercial mortgage Gov

20、ernment scheme Loans from another individual/organisation Invoice finance or factoring (asset based) Equity from another individual or organisation P2P lending Crowdfunding platform International trade finance Mezzanine finance Something else % Sought in last three years % Sought on last occasion Si

21、milar to 2016, when credit cards, bank overdrafts, leasing/hire purchase and bank loans were the most commonly sought www.british-business-bank.co.ukSlide 13 Credit cards and overdrafts most commonly used currently, but two in five use no external finance Forms of finance currently used top mentions

22、 30% 27% 15% 11% 8% 8% 6% 4% 4% 4% 3% 3% 2% 2% 2% Credit card finance Bank overdraft Leasing/hire purchase Bank loan/mortgage Loans from directors Loans from friends/family Equity from directors or friends or family Government/Local government grants Commercial mortgage Private lending / finance com

23、pany Invoice finance or factoring (asset based) Trust/Charity funding Loans from another individual/organsiation Finance from Government scheme Equity from another individual/organisation Base = all SMEs (n=2,070 in 2017). Question A5bi (multi code, prompted). Those not shown 1% or less. 88% of thos

24、e not currently using any form of external finance have not used any form of external finance in the last five years 42% are not currently using any form of finance www.british-business-bank.co.ukSlide 14 Personal savings used most commonly in setting up business Base = all SMEs who started business

25、 in last two years (n=60 in 2017). Question A3 (multi code, prompted). Those not shown 1% or less. Finance used in establishing business, if started in last two years top mentions 66% 8% 6% 6% 5% 5% 4% 3% Personal savings Government/Local government grant Director loan Leasing/Hire purchase (HP) Fam

26、ily/friends - loan Family/friends - gift Loan from bank/building society/finance company Mortgage/re-mortgage on home Similar to 2016, when 70% of new businesses used personal savings to establish business www.british-business-bank.co.ukSlide 15 Around two in three SMEs had sought external finance p

27、reviously, one in five sought it in the last 12 months Base = all SMEs (n=2,070 in 2017). Question A11a (single code, prompted). When last sought external finance 31% 19% 7% 11% 4% 20% 8% Have not ever sought external finance Within last 12 months Over 1 year, up to 2 years ago Over 2 years, up to 3

28、 years ago Over 3 years, up to 5 years ago More than 5 years ago Dont know/Refused Half (51%) have either never sought finance nor sought it in the last five years www.british-business-bank.co.ukSlide 16 Finance other than credit cards and mortgages tends to come from non-bank sources Seeking financ

29、e from bank vs. another source 89% 93% 81% 87% 80% 64% 35% 17% 6%7% 12% 12% 15% 27% 65% 81% 5%1% 7% 5% 9% 2% Finance from Government scheme Private lending/finance company Government/Local government grants Leasing or hire purchase Loans from another individual/organisation Invoice finance or factor

30、ing Commercial mortgage Credit cards Base = all SMEs who sought each form of non-bank finance (n=373 for credit cards/n=87 for commercial mortgage/n=81 for invoice finance or factoring/n=40 for loans from another individual/organisation/n=126 for Government/local government grants/n=398 for leasing

31、or hire purchase/n=72 for private lending/finance company/n=61 for finance from Government scheme). Finance types with a base of 30 or below and those that cannot come from a bank not shown. Question A6c (single code, prompted) % Another source% Bank% Dont know/Refused www.british-business-bank.co.u

32、kSlide 17 3% 1% 2% 3%3%3%3% 5% 34% 42% 5% 1% 1% 3% 4% 7% 36% 42% 4% *% 6% 2% 7% 29% 53% Other Staff training or development To fund export activity Upgrades/repairs/ improvements to premises Develop new product/service Start business Refinancing Expansion Purchase fixed assets Working capital/cashfl

33、ow Main reason for seeking finance continues to be working capital followed by finance to purchase fixed assets Main reason for seeking finance 2015-2017 - last occasion in last three years 201520162017 Around four in ten of those refinancing were looking for a better deal similar to 2016 Base = all

34、 SMEs that sought finance in the last 3 years (n=932 in 2017/n=886 in 2016/n=715 in 2015), all SMEs seeking finance for working capital (n=388 in 2017), all SMEs seeking finance for refinancing (n=37). Question A13b/A14/A15 (single code, prompted) *Note questionnaire changes since 2016, in 2017 we a

35、sked for all main reasons then for which is the most important, prior to 2017 we ask only for the single main reason. In 2017 several new categories were added to the prompted list. www.british-business-bank.co.ukSlide 18 Seven in ten SMEs sought less than 25,000 of external finance on the last occa

36、sion Amount of finance sought on last occasion by employee size Base = all SMEs that sought finance in the last 3 years (n=932 in 2017). Question A28/A29 (single code, unprompted) 30 39 12 17 19 13 24 23 24 11 9 14 5 4 8 9 3 22 4 3 7 00708090100 All SMEs No Employees Employees % Less than

37、 5,000% 5,000-9,999 % 10,000-24,999% 25,000-49,999 % 50,000-99,999% More than 100,000 % Dont know/Refused 2017 median amount 10,000 6,000 20,000 2016 median amount 10,000 6,500 18,000 Larger sums are sought for acquiring another firm or buying out a partner, though in both cases few SMEs have sought

38、 finance for this. Of the more common reasons, the largest sums are sought for refinancing and expansion. www.british-business-bank.co.ukSlide 19 SMEs are more likely to take finance out in businesss name than own name, though with credit cards it is split Taking out finance in businesss name vs. ow

39、n name 52% 22% 36% 32% 29% 52% 80% 58% 69% 73% Credit card finance Leasing or hire purchase Commerical mortgage Bank loanBank overdraft Base = all SMEs who obtained each form of finance (n=612 for bank overdraft/n=311 for bank loan/n=163 for commercial mortgage/n=527 for leasing or hire purchase/n=7

40、42 for credit card finance). Question A10 (multi code). % Own name% In name of business Small proportions of businesses have taken out finance both in their own name and the businesss name this is more common for credit cards (6% have taken out a credit card in both names, vs 3% for other finance ty

41、pes) Nanos and micros more commonly took finance out in their own name while small and medium businesses tended to take out finance in the businesss name. Micro businesses were more likely to take credit cards out in both names www.british-business-bank.co.ukSlide 20 36% 12% 10% 6% 4% 4% 3% 3% 3% 2%

42、 2% 1% 1% Went directly to main bank Spoke to supplier/dealer/manufacturer Researched finance types on internet Used a credit card/overdraft/existing facilities Went to finance provider other than bank Sought advice from other businesses/friends Spoke to finance adviser Spoke to accountant Spoke to

43、board/directors/seniors Looked into finance options Examined expenses/cash flow/company accounts Looked into financing myself internally Went directly to another bank SMEs are most likely to go to their main bank when they need finance, but going to big four in decline since 2015 Base = all SMEs tha

44、t sought finance in the last 3 years (n=932 in 2017). Question A19 (single code, unprompted). Those not shown 1% or less. *Note change in base since 2016, when those who sought finance by being proactive were excluded. 40% of those seeking finance only approached the largest four UK banks (2016 = 43

45、%, 2015 = 50%) Who spoke to first when finance need identified 38% went directly to main bank in 2016* www.british-business-bank.co.ukSlide 21 Banks and own knowledge most common information sources on type of finance and provider Base = all SMEs that sought finance in the last 3 years (n=932 in 201

46、7). Question A16/A19 (single code, prompted). Only top five sources for influence on finance type shown. Sources of information that influenced decision 25% 26% 12% 9% 3% 1% 31% 22% 8% 4% 2% 1% Bank Self Internet Advisor Media Government % Influenced decision on type of finance % Influenced decision

47、 on specific provider to approach www.british-business-bank.co.ukSlide 22 Just over half of SMEs considered only one provider when they last needed finance a decrease since 2014 Number of providers considered 2014-2017 56 60 60 65 11 12 18 14 14 12 10 12 5 6 2 3 7 5 4 3 7 4 5 2 0070809010

48、0 2017 2016 2015 2014 % One% Two% Three% Four% Five+% None/Dont know/Refused Mean = 1.8 (working capital = 1.6, purchase assets = 1.9, expansion = 2.1) Base = all SMEs that sought finance in the last 3 years (n=932 in 2017/n=886 in 2016/n=715 in 2015/n=325 in 2014). Question A22 (single code, unprom

49、pted) Small businesses (with 10-49 employees) were least likely to consider only one provider (41% vs. 56% overall) Those who stayed the same size in last 12 months were most likely to consider only one provider (60%) Those who considered only one provider more likely to have sought bank than non-bank finance (55% vs. 49%) Mean = 1.8 (working capital = 1.5, purchase assets = 2.0, expansion = 2.5) www.british-business-bank.co.ukSlide 23 Having an established relationship is the most common reason for contacting only one provider Base = all SMEs