Credit, collections & insolvency news
The difficulty small business owners are experiencing accessing funding without having to sign a personal guarantee has become clear according new analysis by Purbeck Insurance. The company say that October 2023 saw the largest number of small business owners ever recorded, taking insurance to mitigate the risk of signing a personal guarantee as a condition…
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High street banks are pulling back from lending to small and medium-sized businesses (SMEs). At the same time, demand for capital is set to rise with over eight in ten SME finance experts (83%) believing that high street banks are reducing their appetite to fund the UK’s 5.5m SMEs, according to iwoca’s latest SME Expert…
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Bank-to-business lending is forecast to contract 0.5% this year according to EY ITEM Club, as economic challenges and high borrowing costs dampen businesses’ appetites to borrow. The forecast says net lending to SMEs has been much weaker than to larger businesses this year, with the latest Bank of England data showing loans to SMEs were…
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The Bank of England’s Monetary Policy Committee voted in favour of leaving the base rate at 5.25%. Governor Andrew Bailey insists rates needed to be held high to squeeze inflation out of the economy. In its latest forecast, the Bank cut expectations for UK growth to zero, down from a previous prediction of 0.5%, while…
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Commercial lending software factoring and receivables finance company, Lenvi has been appointed by BNP Paribas, to support its European risk management and operations functions through its risk management software Riskfactor. Over the course of the multi-year contract, Lenvi will support BNP Paribas in reducing risk and improving operational efficiency. Through the implementation of the full-service…
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Small companies have been left with “nowhere to turn for justice” during banking disputes following a decision not to extend the reach of the Financial Ombudsman Service, according to an Federation of Small Businesses. The Financial Conduct Authority (FCA) has decided that it would not be proportionate to provide access to the ombudsman’s dispute resolution…
Read moreNew research from independent SME funder, Bibby Financial Services (BFS), has highlighted a significant threat to the UK economy as banks appear to be retreating from lending to small businesses. Data from BFS’s latest SME Confidence Tracker report reveals that while almost half (43%) of UK SMEs say their need for external finance has increased…
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The number of SME owners securing personal guarantee insurance (PGI) for a business loan doubled in September 2023 compared to the same month in 2022 according to research byPurbeck Personal Guarantee Insurance. The research found that SME business owners are now taking on loans that are on average £388,494 from £357,016 in Q3 2022 – an increase of close…
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Analysis of the Bank of England’s data on SME lending shows that through the first half of 2023 SMEs saw net lending decrease by £5.3 billion. The research by Ebury has highlighted the urgency with which businesses are now making debt repayments in the aftermath of the various Covid-19 loan schemes and the rising cost…
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The Government has paid out £7.39bn to settle bad Covid-era loans, with £2.23bn more in arrears and £750m in default. With data showing that the Government paid out £1.2bn to settle pandemic emergency loans that had gone bad in Q2, Department of Business, Energy and Industrial Strategy figures suggest taxpayers could ending up paying £11.5bn…
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Two-thirds (65%) more businesses are experiencing difficulty in accessing finance from high-street banks than they were in 2022* as mainstream lenders pull away from the SME market, according to new data from Sonovate. These challenges are now so acute that two in five (39%) UK businesses say that, due to funding being so hard to access,…
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Research from Bibby Financial Services (BFS) has found that women SME owners are more likely than men to suffer cashflow challenges, undermining their growth and ambitions. Only half (49%) of women business owners report that their cashflow is stable and meets their needs, compared to a significantly higher two thirds (66%) of male respondents. In…
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Two in five (40%) small and medium sized enterprises (SMEs) have had to stop or pause an area of their business because of a lack of finance over the last couple of years – a significant increase from 27% of SMEs recorded in last year according to new research commissioned by Manx Financial Group. The…
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