New analysis from ThinCats, the fintech lender to mid-sized small firms, shows that Manchester 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 that businesses in Manchester have been quicker than most regions to look beyond the banks for funding since the financial crisis.
Almost two-thirds (64%) of Manchester-based SME loans were sourced through banks in 2007.
This figure has come down to 53% more recently, slightly below the UK average of 57%.
ThinCats is urging Manchester’s business owners to make sure they consider the increasing number of non-bank lenders when looking for funding in 2019.
Richard Lamb, director regional business development at ThinCats, said: “We analysed more than 200,000 businesses across the UK and found that the likelihood of Manchester 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, or to invest in new equipment.”
He added: “Manchester 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 Manchester’s entrepreneurs don’t give up at this stage.
“We estimate there are about 3,800 businesses in Manchester alone that we could help with funding.”
He said ThinCats has almost £1bn of capital from institutions and other long-term investors waiting to be deployed across the UK.
Further analysis by Thincats claims that Liverpool-based companies have been relatively slow to look beyond the banks for funding since the financial crisis.
It says that 78% of Liverpool-based SME loans were sourced through banks in 2007, and this figure has come down to 57% more recently, in line with the UK average.
Richard Lamb said: “There are around 1,900 SMEs in Liverpool, alone, that we could help with funding.”
Source: The Business Desk