Commercial lending to small firms organised through brokers has risen by 17 per cent, though overall lending is still less than half what it was at the peak in 2006.
Figures from the National Association of Commercial Finance Brokers show that many small business owners are still struggling to access funding, in the difficult economic climate.
In the year 2009 to 2010 brokers arranged more than £7.5 billion of commercial finance to small and medium-sized firms, up from £6.39 billion in 2008 to 2009. But this compares to a peak of £19.1 billion of loans to small businesses arranged through intermediaries in 2006 to 2007.
The amount of money lent through invoice financing increased last year for the third year running, rising from £831 million in 2008 to £892 million in 2009.
Buy-to-let lending arranged through brokers also rose slightly last year, following two years of huge falls.
Adam Tyler, chief executive of the NACFB says: ‘We have continued to see the SME community struggling to raise funding. Despite many lenders protestations that they are lending more than ever these figures show that funding for more businesses is still very hard to access.
‘Businesses do want to borrow and they do want to grow. The increase in invoice finance for the third consecutive year shows that brokers are looking for a cost effective alternative for their clients as overdraft limits are reduced and costs increased.’
He adds: ‘Around 90 per cent of small businesses bank with the four main high street banks, but when it comes to borrowing small firms should not be restricted to these lenders.
Members of the NACFB act as intermediaries to small businesses and currently arrange around a quarter of lending to smaller firms for premises, equipment,vehicles and cashflow.
Tags: Alternative Business Funding, small business borrowing, small business lending
No Comments on this post