Wednesday, January 11, 2012 4:42:00 PM
Over the past year more than one in ten (12%) of small business owners in the UK have had to put their own homes on the line as a guarantee for a loan to continue doing business in 2011.
This is according to new research from borro the personal asset lender. The survey of 300 owners and directors of small businesses also showed that a further third of small business owners (33%) would consider using their home as a guarantee if they couldn't get any other kind of finance to help with issues such as cash flow problems, late customer payments, tax bills and staff wages.
With bank confidence still at an all-time low small business owners have had to turn to their personal funds to boost their businesses. The survey found that over half (57%) of small business owners have used their personal funds to inject capital into their business and 17% have asked friends and family for additional funds.
Borro are finding that small business ownersa re looking further afield to get the funding they need. A quarter (26%) said they have used or would consider using their personal assets such as cars, jewellry, antiques etc. to secure a loan for their business.
NFS is an accredited representative of borro, and can assist in arranging such transactions.