"SMEs must take this as another reminder to ensure they are prepared for further challenges"

Douglas Grant, Group CEO at Manx Financial Group PLC:

"SMEs must take this as yet another reminder to review their existing lending structures and ensure they are prepared for further challenges. 

"Many prepared for these hikes by listening to lenders and locking in their debt into fixed rate structures, but other businesses that were not as forward-thinking face significant uncertainty.

"According to our recent research 40% of SMEs — compared to 27% last year — have had to stop or pause an area of their business due to a lack of external financing.

"The unavailability of finance is exacting a toll on SMEs and the UK economy, impeding growth precisely when it is most needed.

"The magnitude of the hindered growth is substantial and calls for novel solutions to bridge this funding gap.

"Since the economic upheaval caused by the pandemic, we have been advocating for a government-backed loan scheme that provides targeted support for specific sectors, bringing together both traditional and alternative lenders to secure the future of SMEs.

"As the government looks for ways to curb the highest rates of inflation in decades, the significance of implementing a permanent scheme cannot be underestimated; it could be the crucial factor that determines the survival or failure of many companies and, consequently, the overall economy.”