Eight in ten brokers believe banks have reduced appetite to fund SMEs

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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Weak business lending to continue into 2024

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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Banks fail to pass on £7.5bn in interest to SMEs

Small and medium-sized businesses are losing out on £7.5 billion each year because banks are failing to pass on higher interest rates to companies with savings according to research by Allica Bank. The study of the business savings market by Allica Bank found that banks are systematically offering larger companies better savings rates while small…

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Half of businesses say accessing finance is more difficult than 6 months ago

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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Two-thirds of businesses experiencing difficulty in accessing finance

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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Securing finance key to half of SMEs growth plans

Access to finance is becoming a critical issue for UK small businesses, with new research finding that more than half (53%) would have to put plans on hold if they were unable to secure finance. The research from Novuna Business Finance underlines how important access to finance is for the small business sector at a…

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Over 90% of mid-sized businesses struggling to access funds

Difficulty accessing capital is forcing nine in ten (91%) of mid-sized businesses to curb growth plans, according to the latest research from accounting and advisory firm BDO.   The bi-monthly survey of 500 leaders of medium-sized businesses, which looks at the challenges and opportunities facing UK companies, reveals nearly one in four (24%) are being…

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SME lending fell in first quarter

15th June 2023 Asset Finance | #business lending

Latest data from UK Finance has indicated that in the first quarter lenders saw a rebound in applications for both loans and overdrafts, with banks reporting quarter-on-quarter growth of 20% and 11% respectively with the increases may indicating that SME demand for finance is turning a corner. The weak levels of demand for finance from…

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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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