NACFB members badly hit

The figures show that:

• Total funding has fallen by nearly 60% year on year
• Buy-to-let business has seen a staggering 88% drop
• Some members reported an 85% drop in business year on year

Chief executive of the NACFB, Adam Tyler, commented: "These figures reveal the true and shocking picture of the struggling SME community. 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 very hard to get access to. The only area to show any kind of growth is invoice finance, which has been an area we have been encouraging members to diversify into as it is one of the few areas where funders are still lending."

He continued: "Figures from leasing and asset finance and vehicle finance brokers have fallen less sharply, however the impact of the current economic woes hit them a few months after the commercial mortgage and buy-to-let brokers had already started to struggle."

He continued: "Recent figures from The Insolvency Service have shown that there were nearly five thousand liquidations in the first quarter of this year - an increase of 7.1% on the previous quarter and a shocking 56% increase on the same period a year ago. Some of this damage has been caused because businesses can't get the funding they need. Without growth in this vital part of the UK economy, the climb from recession will be very slow and very painful indeed."

A more indepth look at the results of the NACFB survey will be found in the October issue of Mortgage Introducer.