Small firms looking beyond banks for funding

A third of SMEs applied for bank overdrafts over the past year with a success rate of 73%, according to a CBI survey.  However, of the 380 UK small and medium-sized firms surveyed, 21% also sought funding from owners, directors, families and friends, with a success rate of 94%. Other sources of finance included credit from suppliers and late payments, while larger firms were found to be more successful in obtaining loans from banks than smaller ones. The research, carried out in partnership with the Association of Chartered Certified Accountants, also found 54% of firms tightened u...