According to a recent Bank of England report, net bank borrowing by small and medium sized businesses was a record £43.3 billion in 2020 compared to £1.4 billion in 2019. It is expected that by the end of 2021 UK small business borrowing will exceed £60bn.
For small business using governmental and private financing options it means the industry is delivering an unmatched level of support to help businesses navigate the crisis, and set them up for recovery.
A poll of more than 90 leading economists suggests it will take around 18 months for the economy to fully recover to the pre-pandemic size.
What does that mean for small business that want to borrow and does it affect the options available to them? To start with, it makes it harder to find good traditional financing from banks.
We also think it makes having a broker more important than ever. As Giles Codrington from ASC London says “Having an experienced business finance broker to steer you through the detailed requirements of banking institutions is essential for a successful outcome of any application being made.“
Speak to your local ASC office to help you find the right lending opportunity.
