With traditional bank lending in its fifth year of decline, the UK’s commercial finance brokers say they have arranged £10.5bn of credit for small and medium-sized enterprises in the past year. This marks the highest figure since 2008 and an annual rise of 17 per cent.
Meanwhile, asset-based lenders, who advance money against equipment or invoices, also reported their biggest annual total since 2008, rising 10 per cent to £17.4bn in the year to June.The data, from industry associations, highlight the shift away from traditional bank lending to small business, which has shrunk by a quarter since 2011. SME funding through leasing and asset finance has more than doubled in the same period, according to the National Association of Commercial Finance Brokers .
Its members also arranged £501m worth of loans through innovative channels such as peer-to-peer lenders, which match individuals to companies that want to borrow, a rise of 80 per cent.
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