The newest high street bank, Metro Bank today has said when it comes to SMEs lending they will not discriminate. The news follows research that Metro Bank says shows that 43% of larger firms have access to the banking manager while only 16% of micro SMEs get access. Larger businesses also are more likely to ask for and be granted loans than SMEs at the rate of 29% to 2% respectively.
The larger SMEs have between 50 and 250 employees and the micro SMEs have less than 10. The report interviewed more than 500 SME decision makers and revealed that micro business not only are less apt to receive advice and support of an advisor they are also substantially less apt to successfully get a business loan. In the last 12 months 29% of larger businesses have been granted loans while only 2% of the micro businesses.
This all despite the fact micro businesses are requesting significantly smaller loan amounts from their particular bank. The research shows that just 19% of the recent applications for loans from Micro businesses have been for more than £50,000, in contrast 92% of loan requests for larger businesses were for more than £50,000.
The larger businesses are apt to request larger sums of money but they are also more likely to be confident to request money at all. Only 7% of all micro businesses turn to their banks for help over the past 12 months with over five times more larger businesses looking for funding for their business. This double standard of treatment has not gone unnoticed by the micro SMEs with many micro businesses deciding to look for another bank in the next 12 months.