Gross Lending To SMEs Remains Positive In Q2 2018
Readers may be interested to hear that, according to data produced by UK Finance, lending to the SME sector in the second quarter of this year has been positive. Let us hope that this continues during the remainder of 2018 and beyond.
In the second quarter new loans approved for small and medium sized enterprises (SMEs) amounted to 69,299. These represented a total vale of £7.063 billion.
Below we break this data down on a country by country basis: –
In England there were 55,675 new loans to SMEs approved with a value of £5,827 million.
In Scotland there were 5,697 new loans to SMEs approved with a value of £590 million.
In Wales there were 5,255 new loans to SMEs approved with a total value of £262 million.
In Northern Ireland there were 2,672 new loans to SMEs approved with a value of £384 million.
Gross lending to SMEs in the second quarter of 2018 amounted to £6,223 million with this being a reduction when comparing the figures for Q1 of 2018 when gross lending totalled £6,589 million. However the figures were higher than Q4 of 2017 (£5,575 million), Q3 of 2017 (£5,571 million) and Q2 of 2017 (£5,609 million).
On a business type sector basis, there have been noticeable increases in the numbers of new loan approvals in the following: –
Agricultural, hunting and forestry – 10, 849 in Q2 of 2018, 11,003 in Q1 of 2018 whereas the figure was only 6,599 in Q4 of 2017.
Manufacturing – 4,783 in Q2 of 2018, 5,747 in Q1 of 2018 whereas the figure was only 3,899 in Q4 of 2017.
Construction – 8,772 in Q2 of 2018, 10,844 in Q1 of 2018whereas the figure was only 7,010 in Q4 of 2017.
Another interesting statistic is that 8 out of 10 loan requests made by SMEs in the second quarter of 2018 were approved. This is a good success rate and it would be wonderful if this continued or even improved going forward.
There are numerous providers of finance for SMEs here in the UK including the high street banks and building societies as well as other specialist lenders including peer to peer lending platforms. Many SMEs seeking finance merely approach the bank with whom they have their business current account whereas it may be that if they were to shop around they may be able to get a better lending package elsewhere. In that respect, why not get in touch with us here at Commercial Mortgage Link and we will put you in touch with a specialist commercial lending broker who has many years experience in this sector and has an extensive panel of lenders at his or her disposal.