12pc of SME owners risk home for business
A further third of small businesses said they would consider using their home as a guarantee if they couldn’t get any other kind of finance to help with issues such as cashflow problems, late payments from customers, tax bills and staff wages.
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.
Paul Aitken, chief executive officer of Borro, said: “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 loans that require property as security become the next thing to turn to.
“Our analysis shows that small business owners are looking further afield to get the funding they need.
“A quarter of small businesses 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.”