SMEs 'still struggling' to secure commercial finance

According to new research, small and medium sized enterprises are continuing to struggle to secure commercial finance.

The National Association of Commercial Finance Brokers (NACFB) released the latest annual survey of its members, which revealed that, despite an increase in lending over the past 12 months, funding is still tough to access.

Chief Executive of the NACFB, Adam Tyler, said, “We have continued to see the SME community struggling to raise funding and being faced with increased costs. Our latest figures reveal the true position of both excellent and vulnerable businesses across the whole of the UK.

“Our asset finance brokers in particular have struggled to find funders and have relied on one particular source for over a year now. This has meant that many businesses have not been able to renew their equipment or to purchase new for expansion.

“The increase in invoice finance for the third consecutive year shows that our members are seeking more cost effective borrowing where they can, as overdrafts limits are reduced but costs have increased,” he added.

Mr Tyler also mentioned that short-term lending and development funding have shown a revival over the last twelve months. He said that this had occurred alongside a rise in commercial property lending, which is up 19 per cent year on year.

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