As the Banks step back, we step in

Bank lending to small businesses in the UK is at an all-time low. New findings show that successful applications are at the lowest level on record and only 1 in 5 small business owners are satisfied with the availability of credit. This is a trend which has persisted for over a decade, but has become most significant in the last few years.

One explanation for why banks in the UK are reluctant to lend is due to their already high exposure to the SME market. During the pandemic, the banks distributed £79.3 billion in loans to 1.67 million businesses via government-backed programmes such as the Coronavirus Business Interruption Loan Scheme (CBILS), Bounce Back Loan Scheme (BBLS), and others.

Recognising this potentially vulnerable position, the banks have turned their attention to debt recovery. So, for the foreseeable future, they are ‘battening down the hatches’ and have ‘pulled up the drawbridge’ to small business.

But do not despair, there is an alternative solution. At BCDF, we specialise in arranging alternative sources of funding for small businesses when they have been unable to access funding from highstreet lenders. Over many years, we have built a strong network of lending partners who are ready and willing to lend to the small businesses.

The alternative finance market has grown significantly in recent years and offers a wide array of financial solutions, covering all industries and all funding requirements. We can help you to identify the right lender and apply for the best solution for your needs.

We work with small businesses throughout the South West at all stages of their business cycle. Whether you are a looking to grow, manage your cashflow or purchase assets, we can point you in the right direction. If you could benefit from a conversation about finance for your business, please call us on 0117 251 0189 or email us on [email protected].