SME funding enquiries double year-on-year

John Hewitt Jones

August 15, 2016

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Enquiries about funding opportunities for British SMEs have seen a two-fold increase, according to the National Association of Commercial Finance Brokers.

Requests on the NACFB’s findSMEfinance.co.uk online platform have totalled more than £20m since the start of August – twice the level seen over the same period last year.

The NACFB’s platform has seen enquiries exceeding £2m per day, suggesting a strong link between the surge in funding applications and the UK’s vote to leave the European Union.

Remortgagers reap the rewards

Adam Tyler, chief executive of the NACFB, said: “Project Fear doesn’t appear to have rattled the SME community. August is typically a quieter month for funding applications but businesses aren’t procrastinating and are showing a real appetite for growth, even with the uncertainty surrounding our future relationship with the EU.

“UK SMEs are the lifeblood of this country but if they’re going to take advantage of the opportunities presented post-Brexit, the alternative funding sector has a vital role to play, particularly as we look to broker new trade agreements with countries outside the EU.

“It’s also important that the government drums home the message that there are many routes that SMEs can take to find funding. There is some caution out there about who is lent to, but there are more lenders than there’s ever been in the commercial finance sector who are happy to provide finance.”

The average size of loans requested in August jumped to £128,000 – a significant increase on £73,000 in July and £94,000 in June.