Demand For Finance By Small Businesses Falls In 2018
In the last few days, the British Business Bank’s 2019 Small Business Finance Markets report has been published which makes for interesting reading. It reveals that the demand for external finance from small businesses here in the UK has dropped when comparing 2018 with 2012. In 2018, 36% of small businesses used such finance whereas in 2012 the figure was 44%.
On more than one occasion in the past, we have made reference to peer to peer business lending. It is interesting that in 2018 such lending grew by 18% whereas in 2017 the figure was 51%. That is a huge difference and this data may concern some peer to peer business lenders. Again, it is interesting that awareness amongst small businesses for peer to peer business lending grew from 47% in 2017 to 52% in 2018.
We cannot get away from news about Brexit and business finance is no different. A staggering 34% of small businesses expect it to become more difficult to access business finance once the UK leaves the European Union. The report also revealed that 3% of small businesses were of the opinion that it would be simpler to obtain finance once the UK has left the EU.
The small business sector play a significant part in the business lending marketplace as there are so many finance options and sources available to SMEs. No longer do all businesses just approach the high street bank where they maintain their business current account to apply for some form of business fiancé. There are so many other places that SMEs can obtain business finance from such as specialist lenders, crowdfunding websites and peer to peer lending platforms.
This can only be of benefit to small businesses as the wider selection of lenders creates increased competition between lenders sometimes leading to more competitive products and better interest rates.
If you are looking for business lending then why not get in touch with us here at Commercial Mortgage Link and we will be pleased to put you in touch with a specialist, knowledgeable business lending broker who will do all that he or she can to find your small business a suitable lending package.