A survey of 300 business owners and directors by high-end pawnbroker borro suggested over a third would raise money against property to battle cash flow problems or late payments from customers and pay tax bills and staff wages.
In fact, business leaders are not distinguishing much between secured or unsecured despite the different levels of financial risk to themselves, with less at 33% considering a bank overdraft.
Paul Aitken, chief executive of borro, said: “It’s surprising to see that as many small business owners would consider applying for a secured loan as would apply for an unsecured loan or an overdraft. This is a sign that as banks continue to make it hard to access unsecured lending facilities, so those that require property as security become the next thing to turn to.”
Where 17% of business-owners would ask family and friends for additional funds, 26% said they would consider using personal assets such as cars, fine art or antiques to secure a business loan.
“Intermediaries recognise that borro offers a valuable income opportunity alongside a transparent and safe form of borrowing for their client’s businesses,” added Aitken.
