84% of areas in the UK saw SME lending from banks fall in the past year as small businesses continue to face difficulties in securing finance, according to data collected by London-based debt adviser Hadrian’s Wall Capital (HWC). The total fall in lending amounted to 5.2 per cent, or £9.7 billion, in a single year.
Hadrian’s Wall Capital analysis further found that a rise in interest rates of 0.25% would immediately cost SMEs £355m in extra interest payments from bank loans. Only 11% of bank loans to businesses are now on a fixed rate, down from 49% in 2012.
Marc Bajer, chief executive officer of Hadrian’s Wall Capital, said: “The news is not great for small businesses seeking finance. Small businesses really need finance which they can rely on in the long term, and which is now in increasingly short supply.”
We have seen an increasing number of SME’s approaching us with an immediate and long term need for cash flow as they have found their banks have not been supportive of their needs and they have found that a more bespoke approach from us is more appropriate for their long term expansion and development.
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