Are SMEs Looking To Expand?
Ideally, the UK economy needs small and medium sized businesses (SMEs) to grow and many owners of such businesses would have had a plan to do so when establishing their new venture. However, as mentioned in the Small Business Finance Markets Update, July 2019 produced by the British Business Bank, there seems to be a reluctance on the part of some SMEs to take on new medium and long term borrowing.
Apparently, it is not just banks that are noticing this but also non-bank lenders such as peer to peer lending platforms.
From the 1st January 2019 to 31 May 2019, the amount of new SME gross bank lending actually dropped when compared with the same period in 2018. For instance, in the five month period to May 2018, the amount of such lending that did not include overdrafts amounted to £23.8 billion. In the same period to May 2019, the amount of such lending came to £23.1 billion. That is a fall of 2.9% – no small percentage drop.
There will always be entrepreneurs who identify niche markets to invest in and seek to grow a fledgling business into a multi-national corporation. Those of you who watch the TV program Dragons Den will understand this.
Here in the UK, there are so many sources of funding. No longer is it just the major clearing banks who provide finance to SMEs, There are so many specialist lenders out their looking to support small and medium sized businesses and help them grow. It is no secret that business lending is so competitive which has to be a positive factor from the business owner’s perspective.
One of the difficulties faced by a business owner is how and where to source competitive lending products. It can be a time consuming exercise and that time could be best spent in the day to day running of the business. So, what can a business owner do in this respect? Well, one option is to use a business lending broker that has an extensive panel of lenders at his or her disposal to help source a competitive lending product tailor-made for the SME market. In this respect, if you are an SME looking for funding, why not get in touch with us here at Commercial Mortgage Link and we will introduce you to a specialist broker with many years experience in assisting SMEs source and apply for finance.