Having limited access to finance has been one of the biggest challenges the company formation and small business sector has faced during the economic downturn.
While the government has pledged to address this issue, many small business owners are still finding that finance is hard to find. Indeed, a recent report has suggested that banks reject on average thirty three per cent of all small business loan applications.
In a context where conventional means of finance are difficult to find, many company formation owners are looking at alternative ways of getting funding for their company.
According to a recent report by financial services company ‘Finance Solutions’ over thirty per cent of small businesses admit to using a personal credit card to improve their company’s cash flow, while twenty three per cent said that they have taken substantial salary cuts to fund their business growth and pay suppliers.