New analysis from ThinCats, the leading fintech lender to mid-sized SMEs, shows Nottingham has a higher proportion of high growth companies and businesses that are more likely to require funding during 2019 than the UK average.
ThinCats also discovered businesses in Nottingham have been relatively slow to look beyond the banks for funding since the financial crisis. Over three-quarters (78%) of Nottingham-based SME loans were sourced through banks in 2007. Although this figure has come down to 60% more recently, this is still higher than the UK average of 57%.
Kevin Steven, Director Regional Business Development at ThinCats, said: “We analysed more than 200,000 businesses across the UK and found that the likelihood of Nottingham businesses needing external funding in 2019 is significantly higher than the UK average. This may be to expand their teams, to help service new contracts, to acquire new businesses or to invest in new equipment.
“Nottingham has proportionately more high growth companies compared to other parts of the UK. Unfortunately, these are exactly the types of companies that the high street banks struggle to fund.
“Half of businesses that are declined funding by their banks fail to look elsewhere. It is vital that Nottingham’s entrepreneurs don’t give up at this stage. Compared to the rest of the UK, our research shows that Nottingham businesses may be missing a trick by not considering alternative lenders. We estimate there are about 3,300 businesses in Nottingham alone that we could help with funding.”