Research has revealed that more than two thirds of UK pubs are struggling to access goods and services for their businesses because of poor credit ratings. This information has been collected by one of the UK’s fastest growing energy provider, Utilita. 70% of UK pubs have said as a part of this research that they struggle to access goods and services due to poor credit ratings.
The data that has been collated by Utilita through a national survey of Small to Medium Enterprises. The survey has shown business owners are of the opinion that small and micro businesses have poor credit ratings or could just be seen as a risk and this leads to them being charged higher rates. A significant level of pubs, 895 has said that they have been landed with a range of unexpected terms and conditions, including higher rates or inflexible payment options. 41% of the SMEs that were consulted as a part of this survey have also said that they have been asked to make large upfront payments for their energy supply. One of the more worrying statistics that has been formed by the national survey is that 26% of pubs have been simply turned down when looking for and applying for energy because of their size.
The Utilita survey shows that in today’s climate, small businesses have a tough job fighting to survive. However, it is also considered that small businesses are the backbone of the economy and the restriction of their access to necessities such as energy will only stifle their ability to grow and then work to support the wider economy. Utilita wants to support businesses, and because of this the company have said that they will not turn down small businesses despite poor credit ratings. The energy provider has also announced their commitment to not charge upfront deposits.
The struggle that smaller businesses face to access vital services goes beyond the energy sector but it is hoped that by highlighting a number of simple but effective steps such as paying bills on time, limiting credit use, regular credit checks and checking the credit rating of suppliers can help small and micro businesses to improve their credit score, Utilita will help them to gain better access to the services that they need, benefiting then and, in turn, the economy as a whole.