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East Midlands’ businesses to require further finance for Covid-19 recovery

East Midlands’ businesses to require further finance for Covid-19 recovery

A survey commissioned by the British Business Bank has found that small businesses in the East Midlands will need additional finance as they recover from the Covid-19 pandemic.


Small business finance intermediaries, including accountants, lawyers and business advisors, across the UK took part in the bank’s latest business advisory community survey conducted by Ipsos MORI, with a majority of respondents in the East Midlands stating that smaller businesses would require additional finance during the next 12 to 18 months as a result of the Covid-19 pandemic.

In the East Midlands, respondents thought demand for finance in the region was strong across all development stages, with 51 per cent saying demand exceeded supply. Respondents, who said there were gaps in the finance supply were most likely to identify gaps in early stage equity (73 per cent), debt finance (49 per cent) and growth stage equity (43 per cent).

The survey also found that in the East Midlands, the demand from businesses would likely to be highest for additional debt finance (86 per cent) over the next 12-18 months, with a lower number seen to be requiring additional alternative finance (64 per cent).

Respondents also forecast that the supply of private sector small business finance would increase over the next 12 to 18 months for alternative finance (57 per cent), growth stage equity (55 per cent) and debt finance (52 per cent).

Dr Sophie Dale-Black, UK Network Director, Midlands at the British Business Bank, said:



“The past 18 months has been an extraordinary time for smaller businesses who have had to face significant challenges. This survey provides new insight into the demand for future funding, with East Midlands businesses set to require increased levels of finance as they progress on their recovery journey.”

“The British Business Bank remains committed to working alongside our partners to increase awareness of finance options and aide them with the knowledge and support in making the right financial decisions for the future. We are here to help smaller businesses in the East Midlands start up, scale up and stay ahead.”

 


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