There’s a fall in the SMEs lending over the past year. According to Hadrian’s Wall Capital (HWC) research, there’s a fall in 74 out of 132 postal areas of Great Britain in the value of outstanding loans.
Birmingham (8% drop) suffered the most followed by Oldham (7%) and Sheffield (6%).
Out of 132 studied areas, only three areas (Newport, Warrington, and Oxford) experience an increase in the lending of 5% or more in the last year.
Region | Q1 2018 lending (£m) | Q2 2018 lending (£m) | Fall in lending in 2018 (£m) | % fall |
Birmingham | £2,249 | £2,060 | -£189 | -8% |
Oldham | £404 | £376 | -£28 | -7% |
Inverness | £442 | £412 | -£30 | -7% |
Sheffield | £1,261 | £1,184 | -£77 | -6% |
Manchester | £1,556 | £1,474 | -£82 | -5% |
Crewe | £516 | £497 | -£19 | -4% |
Glasgow | £1,148 | £1,108 | -£40 | -4% |
Halifax | £166 | £160 | -£6 | -3% |
Chester | £570 | £551 | -£19 | -3% |
Brighton | £1,144 | £1,106 | -£38 | -3% |
London | £19,571 | £19,214 | -£37 | -2% |
CEO of HWC (Marc Bajer), says “Small businesses have spent the last ten years since the financial crisis struggling to secure finance and Brexit uncertainty is compounding this.”
“Having access to finance over the long term can be very important for small businesses planning for the future. If they are unable to access finance to secure a deal or fund an expansion, that could be very detrimental to growth.”
“Although banks are no longer able to provide long-term, fixed-rate lending, businesses should be aware of the finance options available from alternative providers.”
UK SMEs predict 25% sales growth in the next financial year
According to Skipton Business Finance, UK SMEs expect an increase in sales by 25% over the next financial year across all sectors.
MD of Skipton Business Finance (Greg Bell) said, “We’re shocked and surprised by these results. When we conducted the research we were expecting to find a modest average of 5-10% but 25% is truly amazing. This is despite SMEs having to face the uncertainties of Brexit and SME confidence hitting a seven-year low as recorded by the Federation of Small Businesses (FSB).”
“If there is one thing that we can take away from this survey is how the UK’s SME industries continue to be persistent and resilient even in uncertain times.”
Further, Bell said, “It’s more important than ever that in times of uncertainty someone can provide SMEs with reliable solutions.”
“As cash flow is the lifeblood of any business, we believe that focusing and improving on this can be a real lifesaver for many businesses.”
“In today’s fragile economy businesses that are still looking to expand and grow need the certainty of robust cash flow to fund their aspirations. Invoice finance provides this assurance and allows the management to focus on their business.”
