Gross Lending To SMEs Rises In Q1 2021
You may be interested to read that, according to the Business Finance Review produced by UK Finance, gross lending to SMEs that includes overdrafts and loans was greater in the first quarter of 2021 in comparison to the same quarter last year. In the first quarter of this year, the amount of gross lending to SMEs totaled £7.6 billion whereas in the first quarter of 2020 the figure was £5.6 billion – this is an increase of 36%. However in the last quarter of 2020 the figure was £9.6 billion.
On a regional basis, London witnessed the most gross lending followed by the South East followed by the South West in the UK.
Apparently, in the past 18 months, there has been a reduction in the number of overdrafts for SMEs. This is probably not surprising due in part to the Government backed lending schemes potentially available to SMEs. The amount in monetary terms of overdrafts being utilized in the first quarter of 2021 only equated to 39% of that available whereas in 2018 and 2019 the figure was 60%.
It is going to be interesting to see what happens to the level of gross borrowing to SMEs in the next few quarters as we hopefully come fully out of lockdown. Unfortunately, a significant number of businesses have ceased to trade but who knows, this may create opportunities for new small and medium sized enterprises to set up in place of some of those that have closed down permanently.
If your business is looking for finance, whether you are a new start up or have been established for many years, then why not get in touch with us and we will introduce you to an experienced broker who will do all that it can to help you source suitable, competitive funding through an extensive panel of lenders. We look forward to hearing from you at your earliest convenience.