Partner Article

Entrepreneurs turn to friends and family

The number of business owners turning to friends and family for funding has doubled in the past year, new research suggests.

Two in 10 small business owners said they would approach relatives or friends if bank funding dried up, according to a survey by Close Invoice Finance. The figure stood at just 10% this time last year.

A third of those polled also said they would be willing to take out a personal loan to secure cashflow, while 7% said they would use credit cards.

David Thomson, chief executive officer of Close Invoice Finance, said: “SMEs continue to feel the effects of the lack of funding available from traditional sources. This has forced more and more SME owner managers to pursue risky short term strategies to secure cashflow and in the process, put themselves and those closest to them, under intense pressure.”

Frost said small businesses should consider all available funding routes but put special emphasis on tackling late payments.

This was posted in Bdaily's Members' News section by Ruth Mitchell .