Gross Lending To SMEs Falls In Q2 2021
According to figures published by UK Finance, the amount lent to small and medium size enterprises (SMEs) on a gross basis dropped in the second quarter of 2021 when compared with the first quarter of 2021 here in the UK. In Q2 the amount totalled £5.2 billion whereas in Q1 of 2021 the figure was £7.6 billion. This was the lowest seen since the start of 2014.
Interestingly, in the six months to 30th June 2021, the total gross amount lent amounted to £12.8 billion whereas in the six months to 30th June 2020 the amount lent amounted to in excess of £40 billion. One of the reasons for the difference was no doubt due to the loan schemes that were introduced by the Government as a result of the pandemic.
In the second quarter of 2021, it was London that accounted for the location with the largest amount lent. The region with the lowest amount lent was the North East.
It is also interesting to note that the level of repayments increased significantly in the first few months of this year no doubt due in part to repayments being made on government backed loan schemes. Apparently, however, a number of businesses have expressed their concern at their ability to be able to keep up their repayments.
As more and more businesses have re-opened in recent months as we have progressively had various restrictions lifted during the pandemic it is to be hoped that we see a lending recovery here in the UK.
If your business is looking for new finance or to refinance existing borrowing then why not get in touch with us today and we will introduce you to a broker with access to an extensive panel of lenders and many years experience in sourcing and helping arrange competitive finance for SMEs as well as larger corporate entities. We look forward to hearing from you at your earliest convenience.