Some 46% of UK mid-sized manufacturers have faced difficulties in raising finance, according to research from Wyelands Bank.

The study surveyed more than 300 mid-sized manufacturers turning over between £10m to £300m. The results revealed that one in three businesses find accessing finance more difficult than it was five years ago.

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Iain Hunter, chief executive of Wyelands Bank, said that manufacturers have faced significant challenges when raising finance. “What’s more, our research highlights that the situation is getting worse not better.

“Without greater access to finance, UK mid-sized manufacturers will not be able to trade, grow and create jobs.  Helping mid-sized businesses unlock growth along the manufacturing supply chain would help tackle the UK economy’s productivity challenges.

“Mid-sized firms generate more growth and create more jobs than their larger or smaller peers, but they are often neglected by banks and financial services providers.”

The survey found that firms missed out on winning new contracts and stifled job creation as a result of new financing difficulties. Firms reported missing out on an average of £20m in revenues and 11 new contracts.

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Results also revealed a preference for debt financing over equity funding among UK manufacturers. Nearly two-thirds of respondents said they would prefer not to consider giving up equity to raise finance, but a third have had to consider it due to financing difficulties.

Previous research from Wyelands revealed that UK automotive sector is missing out on £25bn due to a lack of finance.

Hunter said: “Our research shows that UK mid-sized automotive manufacturers are not able to grow to their full potential without greater access to finance.  But that finance has not been available as traditional banks are too often unable to help.

“Helping mid-sized automotive businesses unlock growth would help tackle the UK economy’s productivity challenges.  Mid-market firms can have a disproportionate effect on growth and job creation, but first they need to be understood as individual businesses.”