Entrepreneurs call for better access to financial products

25 Feb 2025

Better access to financial products for entrepreneurs will encourage more people to launch small businesses, according to research by the Federation of Small Businesses (FSB).

The FSB says a quarter of entrepreneurs believe that being self-employed has made it more difficult for them to get a mortgage, while those who do succeed in securing one are often faced with higher rates and less favourable terms.

The FSB's report also highlights that the excessive use of personal guarantees, which make borrowers personally liable for business loans, are stifling growth.

In addition, over a third said they do not contribute to a pension, mainly due to cashflow constraints.

Tina McKenzie, the FSB's Policy Chair, said: 'People who decide to take a leap into the unknown by embracing entrepreneurship are taking on many risks – not least that of no longer being able to rely on a secure income.

'Income volatility adds additional barriers to accessing finance products, such as mortgages and external finance for their business, and makes saving for a pension harder.

'The impact of this should be minimised to encourage more people to take the leap without worrying that they will be locked out of common financial milestones as a result.

'The dream of owning your own home is firmly entrenched in our national culture, while we all aspire to a comfortable retirement – but these things should not be a privilege reserved for those in conventional employment.'

Copyright

© 2025 Michael Letch & Partners LLP. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Contact Us

Please call:
01277 655 626

Quick links

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy | Help |

Address
Michael Letch & Partners LLP, 146 High Street, Billericay, Essex CM12 9DF

Michael Letch & Partners LLP is a limited liability partnership registered in England and Wales with registration number OC328815.

Michael Letch & Partners LLP is also regulated by the Financial Conduct Authority to carry out specific activities and investment advice (registration number 112064).

The term ‘Partner’ is used to refer to a member of Michael Letch & Partners LLP. A list of members is open to inspection at our registered office at 146 High Street, Billericay, Essex, CM12 9DF.

Michael Letch & Partners LLP is registered as auditors in the United Kingdom by the Association of Chartered Certified Accountants