Commercial brokers report 85% drop in business

Commercial brokers report 85% drop in business



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Bleak results have been revealed in the latest annual survey from the National Association of Commercial Finance Brokers (NACFB), as brokers reported huge declines in funding for commercial mortgages.  

Shedding light on the current state of the commercial finance sector, the survey showed that total funding has dropped by almost 60% in the past twelve months.

 

Some NACFB members reported an 85% drop in business, as buy-to-let funding plummeted by a shocking 88%, from £3 billion last year to £476 million this year.

 

Funding for bridging finance also fell by 77%, with £190 million worth of funds being made available this year, compared to £836 million last year.

 

Chief executive of the NACFB, Adam Tyler, commented: “These figures reveal the true and shocking picture of the struggling SME community. 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 very hard to get access to.”

 

Mr Tyler added that the only area currently showing any kind of growth is invoice finance, with funding up 20% on last year. The NACFB has said that it is encouraging its members to diversify into it as it is one of the few areas where funders are still lending.

 

“Recent figures from The Insolvency Service have shown that there were nearly five thousand liquidations in the first quarter of this year – an increase of 7.1% on the previous quarter and a shocking 56% increase on the same period a year ago. Some of this damage has been caused because businesses can’t get the funding they need. Without growth in this vital part of the UK economy, the climb from recession will be very slow and very painful indeed.” Mr Tyler concluded.

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