SME Lending Increases
As the media continue with project fear in a post brexit UK the SME sector appears unabashed and ready to commit to future growth. What makes the increase in SME lending more interesting is that August is typically the quietest month for business lending.
Figures released by the NACFB show that the average loan size requested during August has been £128,000, up from £73,000 in July and £94,000 in June. Chief Executive of the NACFB, Adam Tyler said;
“August is typically a quieter month for funding applications, but businesses aren’t procrastinating, and are showing a real appetite for growth, even with the uncertainty surrounding our future relationship with the EU”
“UK SMEs are the lifeblood of this country, but if they’re going to take advantage of the opportunities presented post-Brexit, the alternative funding sector has a vital role to play, particularly as we look to broker new trade agreements with countries outside the EU”
What the research is saying is that the SME sector is alive, well and looking to grow.
Government Message & Lender Options
The alternative funding sector is very much open for business. My experience is that the alternative finance sector is meeting the demand for borrowing from the SME sector, the products, proposals and offerings out there are really well suited to what the SME wants.
What the alternative finance sector are doing is offering lending which allows for businesses to be imperfect, who have had a few bruises or who simply cannot meet every criteria placed on them by the traditional banks.
At the moment the thing missing is the message from Government, on this Adam Tyler said;
“It’s also important that the government drums home the message that there are many routes that SMEs can take to find funding. There is some caution out there about who is lent to, but there are more lenders than there’s ever been in the commercial finance sector who are happy to provide finance”
Maybe the apparent failure of the Funding For Lending scheme has left the Government with some hesitation about supporting another initiative, however the alternative finance sector doesn’t require Government backing, it just needs the profile raised and SMEs encourage to explore the options available to them.
There are more commercial lending options in the marketplace than ever before, for SMEs that want to grow there are opportunities to borrow.
By Dave Farmer
Lime Consultancy offer commercial lending options across the alternative finance sector, for more information please get in touch. For any comments please add them below.