Allica Bank

Over 90% of brokers fear lack of commercial mortgage availability this year

Some 82% of brokers have seen a reduction in the supply of finance from business lenders since the start of the pandemic, with more than half describing it as ‘significant’, according to Allica Bank’s latest commercial mortgage broker survey.

The majority of the 131 participants polled think it is unlikely that banks and non-bank lenders will be able to meet the future needs of SMEs for a range of crucial financial products in 2021, especially commercial mortgages (93% fear lack of availability), unsecured loans (86%) and secured facilities (81%).

The research suggests that SMEs could be starved of funding to fuel future growth because lending capacity has been tied up in CBILS and BBILS.

It found that brokers are also concerned about the ability of SMEs to access asset finance this year. 

Almost three quarters (70%) of the brokers polled said that they think it’s likely that SMEs will be underserved by banks and non-bank lenders for this form of funding.

Nick Baker, head of intermediaries at Allica Bank, claimed: “The government lending initiatives have been a lifesaver, but they have also tied up the capacity of many lenders.”

He added that businesses not seeking Covid relief, such as those looking to grow, will be “central to the UK’s economic recovery, and we need to make sure they have access to adequate funding now to spur long-term growth”.

Allica Bank recently boosted the maximum loan size for its commercial mortgages from £2m to £3m and expanded its workforce to meet future demand.

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