Credit, Collections & Insolvency News
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 moreAsset finance brokerage, Approved Business Finance, has announced two senior promotions, naming Mark Kozo as its new Commercial Director and Emily Skellham as Head of Credit. Kozo, formerly Marketing Director, is eager to collaborate with the leadership team in his new role to enhance the organisation’s business growth. Previously holding the position of Sales Manager, Skellham…
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New 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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New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in August 2023 by 19% compared with the same month in 2022. In the first eight months of 2023, new business was 15% higher than in the same period in 2022. The…
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New research by Praetura, has revealed that three in five (59%) SMEs and their brokers surveyed say that it is more difficult now to access the funding they need to grow than in the last five years, as a funding crunch hits Britain’s small businesses. SMEs suggest that servicing demand is their biggest challenge, not…
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New research by Intuit has found that UK small business credit card spending up by 22% since the pandemic amidst funding challenges. With elevated inflation and high-interest rates, small businesses have increasingly depended on their credit cards, with the current spending being 20% higher, on average, than they were before the pandemic. At the same…
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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 British Business Bank (BBB), the Government’s economic development agency, reported a loss of £135 million in the year to March. The bank, which supports investments in SMEs, was affected by a drop in valuations across its portfolio. Despite this, the bank’s performance remained ahead of expectations. Louis Taylor, CEO, British Business Bank, said: “The British Business…
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