Commercial lending to SMEs rises by 17%

Overall commercial lending to small to medium-sized enterprises (SMEs) has risen by 17 per cent year-on-year, according to the latest report.

A study carried out by National Association of Commercial Finance Brokers (NACFB) among its members shows that invoice finance increased for the third year running, now double of that in 2007, while buy-to-let mortgage lending has increased after a significant drop in the previous two years.

Chief executive of the NACFB Adam Tyler said that the figures reveal the "true position" of both thriving and vulnerable businesses across the UK.

"Despite many lenders' protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still very hard to access," he explained.

Mr Tyler added that, while the increase in lending over the last twelve months is "pleasing", this has come from a very small base compared to previous years.

It follows a report compiled by the Finance & Leasing Association, which showed that its members lent £12.5 billion to consumers in the second quarter of 2010.

Posted by Claire Robin