Credit, Collections & Insolvency News
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 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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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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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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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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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 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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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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More than a quarter (26%) of business leaders say they have had difficulties accessing finance from main banks, whilst over a third (38%) say that banks don’t understand their business needs and two in five (41%) think banks’ lending policies haven’t kept pace with modern business needs according to new research by Sonovate. The research…
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The value of overdrafts used by small and medium-sized enterprises (SMEs) has grown 18% from £8.3 billion in May 2021 to £9.8 billion in May 2022 as the financial stress in small businesses rises according to research by UHY Hacker Young. UHY Hacker Young says that the rise in overdraft use is concerning as overdrafts…
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The total value of lending to businesses has risen by £12 billion to £533 billion (in the 9 months to the end May 2022) as banks increase their lending following a sharp fall at the end of the CBILS and BBLS schemes according to research by ACP Altenburg Advisory. The research found that the rise…
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Outstanding bank lending to small businesses in the hospitality sector has fallen by more than £1.4 billion since the end of the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS). Overall Bank lending dropped to £14.6bn in April 2022, down from £16.08bn in March 2021, according to analysis by Hazlewoods. There…
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UK Finance’s latest Business Finance Review has indicated a gradual return to normal lending trends across SMEs during the first quarter of 2022. The research found a modest uptick in demand for cashflow finance through overdrafts and invoice finance and asset-based lending – as a consequence of both the end of Covid-19 restrictions and the significant…
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