For the third year in a row, the amount of money being lent to small and medium-sized enterprises has increased, with the total amount being lent approaching £9 billion. These figures have come out of the National Association of Commercial Finance Brokers, or NACFB.
Adam Tyler, the Chief Executive of the organisation, has recently commented, “We often hear that the small and medium-sized enterprise community is struggling to raise finance, while costs are increasing.
However, the latest figures that we have discovered seem that the actual position of these businesses is that they are being offered more money than ever before. This is something that is not just true for a small pocket in the UK but seems to be the case all over the country.”
Based on previous years, the number of commercial mortgages being organised this year increased by 26 percent, but this is not the most impressive figure that the recent figures have shown. It seems that asset finance has increased by hundred percent over the last year, and brokers in this area have seen activity increase greatly.
This is going to be very welcome news for small businesses however despite this, and the introduction of the Funding for Lending, and the National Loan Guarantee scheme, the confidence in small businesses is still falling, and many fear that they won’t be granted finance should they ask for it.
Around 70 percent of businesses that were surveyed for the Federation of Small Businesses stated that they thought finance was currently unaffordable for them – at least over the next 12 months. This lack of confidence is obviously a serious issue for the economy.