Demand For Lending To SMEs Falls In Q3 2018

The Bank of England produces a quarterly survey called the Credit Conditions Survey in which it publishes information provided by banks and building societies relating to credit conditions over the previous three months and the following three months covering various unsecured and secured lending to a number of sectors such as households and small businesses. Below, we provide some of the highlights of the survey relating to the business sector that we trust you will find of interest.

Demand for small business corporate lending in the third quarter of 2018 actually dropped but it is being forecast that demand in the last quarter of 2018 will be unchanged. Obviously it is a disappointment to read that demand has fallen for this important sector of the business world. A number of factors could be causing this such as a slow down in the growth of small businesses that, if this were the case, would be slightly concerning.

There will no doubt have been many small businesses that, over the years, have expanded and become large corporates employing many thousands of employees and indirectly creating jobs for many other businesses that make and supply products for large corporates. Therefore, it is important that the small business sector is nurtured and supported by the finance world.

However, it is at least comforting to read that lending to business spreads were unchanged in respect of small and medium sized businesses in the third quarter of 2018. This is expected not to change in the last quarter of 2018.

As far as defaults were concerned, it has been reported that these rose in the third quarter of 2018 for SMEs and all other business types. It is forecast that, in the last quarter of 2018, default rates are to remain unchanged.

Here in the UK there are many sources of lending to SMEs. These include the likes of traditional high street banks and building societies as well as investment banks and more specialist lenders including peer-to-peer lending. Businesses can seek finance through a number of channels such as directly contacting the bank or building society where you maintain your business account, speaking to other banks and specialist lenders or even making initial contact via the Internet.

However, another way is to get in contact with a specialist commercial finance broker that has an extensive panel of lenders to choose from. In this respect, why not get in touch with us here at Commercial Mortgage Link and we will put you in touch with a commercial mortgage broker who will discuss your requirements and do all that he or she can to help arrange suitable, competitive finance for your business. We look forward to being of assistance.

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