SMEs continue to hunt for credit

Small and medium-sized enterprises (SMEs) have found it notoriously difficult to obtain secure funding during the downturn with a trend of the banks refusing to lend. The Bank of England’s April 2014 ‘Trends in Lending’ report showed overall lending to UK businesses was down by 2.1 per cent from a year ago.

The recently published ‘Trends in Lending Report’ in July 2014 showed some improvement, with a positive net rise of £235m in lending to SMEs in June 2014. However, it also revealed a £3.45bn net fall in overall bank lending to non-financial businesses in the UK, leaving many SMEs in serious financial difficulties.

The problems with bank finance have led to a rise in alternative lending. Money provided to smaller firms by alternative online funders rose from £318m by last September to £852.5m by June 2014. It is expected to reach more than £1bn in August this year, according to finance firm Fleximize (launched in January 2014 offering loans and revenue-based finance to UK businesses). It estimates that, during the period, the amount of funding provided rose by about 11.7 per cent a month, equivalent to about £2.2m per day…

Click on the link below to read the rest of the Gateley briefing.

Briefings from Gateley

View more briefings from Gateley

Analysis from The Lawyer


111 Edmund Street
B3 2HJ

Turnover (£m): 66.00
No. of Lawyers: 372