Growth Rate Of SME Borrowing Falls In October 2019
According to statistics produced by the Bank of England contained in its Money and Credit – October 2019 report that was published on the 29th November 2019, the borrowing growth rate to SMEs dropped to 1%. It is also worth noting that, for the same period – October 2019, the borrowing growth rate for large businesses dropped to 5.3%.
There will no doubt be a number of reasons why the borrowing growth rate to SMEs has fallen i.e. the uncertainty surrounding Brexit. It will be interesting to see what the data looks like in the early part of 2020 relating to SME borrowing.
There are a huge number of small and medium sized businesses (SMEs) here in the UK. Many will have had to borrow funds to get established and no doubt a significant number will require further funding to expand. Let’s not forget that the SME of today may well turn into a multi-national company in 5 or 10 years time. A number of small businesses start off as a one-person operation but, as the business grows, it may take on employees.
Fortunately, there are many lending options available to SMEs here in the UK. Yes, there are the traditional high street banks and building societies that support SMEs financially by way of the likes of business overdraft facilities and loans but, over the years, there are also specialist lenders that have appeared on the scene such as peer to peer lending platforms. As a result, this makes for a more competitive lending environment that can only benefit small and medium sized businesses. For instance, interest rates and fees can vary between providers of business finance.
So, if you are the owner of an SME how do you go about sourcing say a business loan. Yes, the natural inclination may be to approach your bank or building society business account manager who looks after your business current account but with so much competition out there you may wish to shop around to try to source a competitive lending package. You could do this yourself but is your time not better spent in dealing with the day-to-day running of your business? Instead, why not use the services of a broker who specialises in sourcing and helping arrange business finance. In this respect, why not get in contact with us and we will put you in touch with a broker who will do all that he or she can to assist.