This is according to the National Association of Commercial Finance Brokers’ annual survey of its members.
The survey also found:
- Total commercial lending to SMEs via brokers increased by 14% year on year
- But overall lending still remains at 44% of the total at the peak of the market
- Invoice finance increased for the fourth year running and is now double of that in 2007
- Buy-to-let mortgage lending increased by 46% but this follows huge drops in the previous two years.
“Despite many lenders’ protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still very hard to access, but it has improved. Whilst we are very pleased to report that there is an increase in lending over the last twelve months, this is now coming from a wider variety of lenders and is also being lent in a real variety of ways”
“Commercial mortgages rose by just over 6% and asset finance went up by 3.5%, however short term lending rose by a whopping 180% over the last year.
“It is pleasing to see an increase in Development Funding of 103%, our members have been helping provide the cash needed by developers to build much needed new residential housing stock.”
“Around 90% of small businesses bank with the four main high street banks; when it comes to borrowing SMEs are now reaching out to a wider variety of lenders. NACFB members have access to 68 different providers of business finance for their clients. Businesses do want to borrow; they do want to grow.
“A recent survey of SMEs showed that only 16% had applied to their banks for borrowing, of which one third were rejected. These businesses need to feel confident when they are considering borrowing, and the NACFB now receives ever increasing numbers of introductions for new business from a plethora of different SME trade bodies. Our members are now sourcing new lines of funding and this is helping the SME’s in the UK to grow and invest.”
