Small business planning neglect sees 1 in 5 denied loans
Up-to-date business plans used by just 10% of those with a small business to secure funding, new research reveals
Newcastle, 9 February 2012 – Almost a quarter of UK small- and medium-sized enterprises (SMEs) applied for a loan in the past 12 months, but 1 in every 5 of these applications was rejected, according to the latest research from leading accounting software and business services provider Sage UK.
The findings, which come from the January 2012 Sage Omnibus of over 1,000 UK SMEs, also revealed that 7 in 10 small firms make use of their business plans to measure the performance of their company, but that only 1 in 10 with a small business use their business plans to secure finance or funding for their business accounts. Even more concerning, the research identified that under half of all firms (42%) do not have a business plan at all.
In order to help owner-managers more accurately build sustainable growth and secure further finance for their business accounts, Sage is providing its business planning tool Sage Planning for Business free with its flagship small business accounting software Sage Instant Accounts 2012. Sage Planning for Business is designed to help make finance from banks and investors more accessible to people with a small business, by allowing owner-managers to build upon their cash position, confidently ensure the sustainability of their business accounts, and easily create robust and up-to-date business plans.
Robin Moore, Product Manager for Sage’s Small Business Division and accounting software, commented: “Access to finance remains one of the greatest challenges facing small business owners today. However, there are a number of vital things owners can do to help themselves and their business accounts, such as ensuring they have a fully robust and up-to-date business plan in place. By incorporating Planning for Business into our accounting software Sage Instant Accounts 2012, we are aiming to help businesses more accurately plan for the future and achieve their aspirations for growth.”
To further support those with a small business, Sage Instant Accounts 2012, the easy-to-use accounting software, contains a host of improved features to save owners even more time on their business accounts. The latest package allows small businesses to:
· keep track of their cash flow and profitability;
· submit VAT returns directly online;
· prepare year end accounts; and
· produce customised Charts of Accounts using templates for different business structures (eg. sole trader, partnership, charity or limited company).
For further information, please visit: sage.co.uk/sage-instant-accounts.
*Sage Planning for Business is available for free for a limited time only.
About Sage (UK) Limited
Sage (UK) Limited is a subsidiary of The Sage Group plc, a leading global supplier of business management software solutions and related products and services, principally for small to medium-sized enterprises. In the UK, Sage provides software and services to more than 800,000 businesses ranging from start-ups to large companies. This software ranges from accounts and ERP, HR and payroll, forecasting and business intelligence to customer relationship management, e-business and help for start-ups. Services include Excel Support, HR Advice, Health and Safety Advice and training courses.
