UK Finance has published its latest SME Update on SME loan approval (for Q3 2018) which show that rates remain consistently high.
The figures show that there were 69,980 new loans and overdrafts approved for a value of £7.0bn with banks approving eight out of ten applications for SME Finance. The figures also showed that cash held in both immediate and notice accessible SME accounts continues to rise.
Commenting on the data, Mike Conroy, director of commercial finance at UK Finance said “Banks approved nearly 70,000 loans to SMEs in the third quarter of 2018 and success rates remain consistently high, with eight out of ten applications for finance being given the green light. Firms continue to build cash deposits and demand for finance remains subdued and steady across the UK’s regions and sectors, suggesting businesses are exercising caution in the face of future uncertainty.”
“However, some businesses are now increasing the use of their agreed overdraft facilities in order to manage current cash flow but not leveraging these to their full capacity. The finance industry is well placed to help businesses with additional finance and working capital lines should demand for financial support increase in the coming months”.