There are a lot of factors that affect the willingness of a bank to lend money to SMEs. The most obvious ones tend to be focused on the economy and general levels of business activity.
The least obvious are likely to be internal to the banks and to a large degree, confidential.
Some of the banks, for example, may be in danger of breaching internal sector limits. If a bank has increased its exposure in say, investment property mortgages without offsetting this with increased lending to other product areas such as Healthcare, Agriculture, Retail etc its loan book will become unbalanced. To compensate the bank will probably make its investment property product less attractive until some form of balance is restored.
It is part of our role at ASC Finance for Business to know which banks have an appetite for the different sectors so that we make sure we focus on the best lender for our customer. This saves a great deal of time and effort for the borrower, not to mention disappointment.
We will be happy to help any of your clients who are looking for Business Finance so please do not hesitate to contact us.