Short term lending has grown by over 40 per cent over the last 12 months, according to the latest National Association of Commercial Finance Brokers (NACFB) annual member survey.

The results confirm that over £350 million worth of bridging deals were completed by the Association’s brokers, compared with £254 million last year – an increase of £96 million.

Deals made in both the commercial mortgage and buy-to-let markets also saw increases of 26 per cent and 2 per cent respectively. 

The largest increase according to the survey was in the leasing and asset finance market, doubling last year’s activity to over £2 billion. 

However there was a marked decrease in development finance business levels; brokers reported a 47 per cent fall from £2.59 billion last year to £1.34 billion this year. 

There were also small drops in the invoice and vehicle finance sectors, along with a levelling out of debtor finance levels after four years of growth.

Despite this, the NACFB survey found that activity increased by £300 million to £8.98 billion, a 4.09 per cent increase on last year’s levels. 

Survey results:

The NACFB’s Chief Executive, Adam Tyler, commmented: “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. 

“Despite many lenders’ protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still hard to access, but it has improved if you know where to look.”

He added: “We are very pleased to report that there is an increase in lending over the last twelve months, this is now coming from a wider variety of lenders and is also being lent in a real variety of ways.”

Adam also took the opportunity to outline the Association’s plans for the near future. He said: “Around 90 per cent of small businesses bank with the four main high street banks; when it comes to borrowing, SMEs, with our guidance, are now reaching out to a wider variety of lenders.

“We are embarking on a new initiative this autumn, which sees our work over the last 12 months come to the fore. We now have a new central hub that is starting to take leads directly from the Small Business community from some of the largest trade bodies. 

“These businesses need to feel confident when they are considering borrowing, and the NACFB is there on a national basis to fill any voids left in funding for SME UK.”