Bank lending to SMEs fell by £14bn in 2022

The value of outstanding bank loans to SMEs fell by £14 billion in the last year, from £209 billion to £195 billion, with banking turmoil following the collapse of Credit Suisse and SVB threatening to further reduce access to funding according to ACP Altenburg Advisor. In contrast, loans to large businesses increased by £14.7 billion,…

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Change to bank capital rules could result in £44bn drop in SME lending

A report by Oxera commissioned by SME lender Allica has found that proposed changes to UK bank capital rules could result in a £44 billion drop in lending to SMEs. The research suggests that the Prudential Regulatory Authority (PRA) could put up to £44 billion of SME lending at risk. In November 2022, the PRA…

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Loss of confidence resulted in decrease in SME borrowing

UK Finance has reported that a loss of confidence resulted in lower SME borrowing in Quarter 4 (Q4) 2022. The report showed that gross lending by the main high street banks totalled £18.4bn over 2022.  Due to economic uncertainty and rising interest rates, SMEs were more cautious in the latter half of the year with…

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Challenger and specialist bank lending hit record high of £35.5bn in 2022

Latest data from the British Business Bank shows that lending to small firms by challenger and specialist banks hit a record high in 2022.  The report shows that smaller banks lent £35.5bn to SMEs last year, giving challenger and specialist banks a 55% share of the market. This exceeds the 51% market share smaller lenders…

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High street banks cut lending to SMEs

15th February 2023 Business Lending | #business lending

Demand for finance from the UK’s 5.5m small and medium-sized businesses is on the rise at the same time as banks are reducing their lending appetite, according to iwoca’s latest SME Expert Index. More than eight in ten SME finance brokers (82%) agree that major banks have reduced their appetite to fund SMEs, while nearly…

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Business lending forecasted to contract sharply this year as recessionary pressures intensifies

7th February 2023 Asset Finance | #business lending

Bank-to-business lending is forecast to contract 3.8% (net) this year, from net growth of 3.7% in 2022, before returning to growth (of 0.9% net) in 2024 according to research by EY Item Club. UK assets under management are forecast to grow 2.6% this year and 6.5% in 2024, after a projected fall of almost 11%…

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Business investment grew 5.2% last year

Business investment grew a projected 5.2% in 2022 – leaving it 7% below pre-pandemic levels latest EY ITEM Club research has found. EY ITEM Club now expects business investment to fall of 0.8% this year although weaker business investment is one of the factors likely to slow the recovery from recession. It is predicted that…

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Businesses say bank borrowing is less attractive

Chief Financial Officers (CFOs) at the UK’s biggest businesses say they are less keen to borrow money from banks now than at any point since the financial crisis, according to a new survey by Deloitte. The research found that CFOs rate borrowing as less attractive now than at any time since the financial crisis, with…

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Small businesses finding it difficult to secure affordable loans

The Federation of Small Businesses (FSB) says SMEs are increasingly struggling to secure affordable bank loans, with fewer than half of applications successful in Q3, compared with nearly two-thirds before the pandemic. Two thirds of small firms (66%) plan to make some form of investment in their business by 2024, but under half (49%) feel…

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Shift in business lending needs as caution rises

Latest data from UK Finance has indicated a slowdown in lending to SMEs following a reduction in applications for finance – particularly loans in the previous quarter. It is expected that SMEs’ demand for finance will continue to be muted this year as SMEs become more cautious because of the uncertain year ahead. The figures…

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Nine in ten SMEs intend to borrow to help survive recession

13th December 2022 Business Lending | #business lending

New research conducted by Allica Bank with 150 UK SMEs shows the demand for borrowing has majorly increased due to the recession with nine in ten SMEs are looking to borrow in the next 12 months. With 2023 being a year that looks set to be dogged by recession, inflation and rising interest rates. More…

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Business loans predicted to fall 3.5% in 2023

Business loans are set to fall by 3.5% in 2023 due to a deteriorating economic outlook according to new research by EY ITEM Club. The research found that the figures where a contrast to 2021, when many UK businesses focused on paying back pandemic debt, whilst this year has seen a return to growth in…

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Lending to SMEs remains stable

28th September 2022 Asset Finance | #business lending

New analysis by UK Finance has indicated that lending to small and medium-sized enterprises SMEs has remained stable in the first half of 2022. The figures shows that gross lending to SMEs edged up higher to £5.1 billion in the second quarter of 2022, with demand for overdraft facilities remaining stable following a rise in…

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