NACFB nearly doubles business since crash

NACFB nearly doubles business since crash




The National Association of Commercial Finance Brokers (NACFB) has announced that small business lending accelerated up to £12.7 billion….

 

The National Association of Commercial Finance Brokers (NACFB) has announced that small business lending accelerated up to £12.7 billion…

According to the NACFB’s national broker survey, lending levels have almost doubled since the financial crisis in 2009, when they stood at £7 billion.

The association has now revealed that lending to small UK business has risen by 20 per cent – the largest increase in business by NACFB brokers since the recession, following the 16 per cent year-on-year growth which was reported a year ago.

Commenting on the increase, Adam Tyler, Chief Executive of NACFB, said: “There are now more than 100 SME lenders operating in the UK, and the market is diversifying at an incredible rate.

“Availability of funds is no longer the issue, but there are still significant barriers facing SMEs who are looking for finance.”

Lending levels that also grew were from types of finances that have newly emerged, such as crowdfunding and peer-to-peer, now making up £624 million of the figure.

Figures also highlighted that vehicle finance for SME loans surged to £835 million in 2013/2014 – which is more than double the £405 million figure from the year before.

Buy-to-let finance also accelerated by 30 per cent, stands at £3billion, possibly due to the recent struggle for homeowners.

The number of lenders at the Association grew from 45 during the recession to 115 this year.

 

Commenting on the success, Stephen Johnson, Managing Director, Commercial Mortgages, Shawbrook Bank, said: “It’s great to see the strength of lending through the NACFB’s brokers over the last year. At Shawbrook Commercial Mortgages we are exclusively committed to our brokers.

"Much has been written about the reduction in lending from the government’s Funding for Lending Scheme but the success of the broker channel shows that there is more to SME lending. We believe that combining our brokers’ expertise and advice with the process and service efficiencies of specialist banks delivers a broader offering to borrowers, and goes a long way to supporting SME lending in the UK.”

NACFB Annual Broker Survey results:

Business Levels 2013/2014 Last year £ Year on year % This year £

Commercial Mortgages 2,153,620,697 +3.4 2,226,994,194

Leasing & Asset Finance 2,310,535,297 +17.8 2,721,020,575

Invoice Finance 674,109,354 -2.3 658,166,500

Vehicle Finance 405,227,092 +106.0 834,771,401

Buy-to-let 2,445,722,378 +31.0 3,209,846,697

Bridging 542,376,164 +32.5 718,733,404

Development 1,451,754,906 +18.4 1,718,733,404

New types of Business Finance 500,934,223 +24.6 624,026,028

GRAND TOTAL 10,484,280,111 +21.3 12,712,292,203

 

 

Leave a comment