UK Finance today has released its latest Business Finance Review which reports on the finance needs of SMEs.
The latest Review shows a continuation of the gradual return to normal lending trends across SMEs during the first quarter of 2022. We saw a modest uptick in demand for cashflow finance through overdrafts and invoice finance and asset-based lending – this is a consequence of both the end of Covid-19 restrictions and the significant increase in cost pressures that many businesses are now facing.
Following the significant growth in lending volumes in 2020/21 from the government’s Covid-19 lending schemes, demand for finance has been comparatively muted over the past year with gross lending of around £5 billion per quarter from the high street banks.
During the first quarter of 2022 gross lending to SMEs was £4.9 billion, £0.1 billion higher than the previous quarter.
Following two years of … Read more