Bank Lending to Small Businesses: An Update Industry News 16th July 2015 | By Liberty Here at Pure Commercial Finance we help small businesses find suitable finance options with the best deals possible. It’s what we do. But we can only present these brilliant deals if they’re out there. So, what’s happening in the world of banking in summer 2015? Let’s find out. Bank Lending to Small to Medium Businesses Has Increased Latest figures released by the Bank of England show that new lending for SMEs increased by a huge £600 million in the first quarter of the year. And this is likely to have been encouraged by the government’s Funding for Lending Scheme (FLS). This is great news for small to medium businesses and is in sharp contrast to figures from 2014 where bank lending dropped by an average of £500 million every quarter. And lenders are starting to grow in confidence once again. The Director of one company, Eco Warrior Resorts, who has recently received both a loan and cash advance from an alternative lender has told the press: ‘There is no doubt that the process of securing finance is daunting. But as long as you have a solid business plan and have done your research into all the funding options available, it is achievable.’ Image via Wikipedia under CC BY-SA 3.0 Is This an End to SME Finance Issues? Of course, increased bank lending doesn’t mean all financial troubles are over for small to medium enterprises. Some small businesses, especially those in the tech industry, are still struggling to see their financial requests met. Norman Carson, Director of Business Development at alternative lender, Boost, says: “Smaller companies in Britain have been told for too long that they’re inadequate in some way, operating in too risky a field, lacking in assets, or trading in the wrong way,” And many a small business holds a grudge after being scorned in less secure financial times. According to BDRC Continental’s latest SME finance monitor, half of the UK’s SMEs still refuse to borrow money from banks and the number of permanent non-borrowers (PNBs) is on the rise. As a result, alternative forms of finance are seeing a healthy boost of interest. How Can You Ensure Bank Funding? As more finance becomes available there are a few tips you can take on board to increase your chances of securing funding. The first thing to do is identify the correct kind of funding for your needs (we can help with that). Traditional banks tend to prefer a secure form of debt, such as using tangible assets to off-balance loans. Whereas alternative finance is much more flexible and can be tailored to each company’s specific needs; though you won’t find these alternative lenders on the high-street. Whether you require traditional or more alternative finance we can help. We offera new approach to commercial finance and our experienced advisors have unrivalled knowledge of the market. Give us a call today on 02920 766 565 to discuss your options.