• Report suggests a return to SME lending, but eyes are on COVID

        • The respected quarterly SME Lending Monitor, published by government-appointed lending portal Funding Xchange, reports signs of ‘green shoots in Autumn’ with a tentative recovery in SME lending. But the close alignment between the number of coronavirus cases and the volume of the guaranteed government loan schemes taken by SMEs during lockdown leaves open the question as to whether the recovery will be sustained as cases rise again in the second wave.

          Quarter three saw key SME lenders return to the SME lending market. Pointing out that 50 per cent of lending to those small businesses with less than £2m turnover is undertaken by non-high street lenders who suffered liquidity shortages at the outset of lockdown, the Monitor reports a return to liquidity. For key lenders, where liquidity dropped by up to 80 per cent during the crisis as measured by the number of lenders actively lending, a pathway to recovery is now emerging that suggests a recovery to pre-crisis levels.

          A host of new entrants are fuelling this return to liquidity. Unencumbered by legacy portfolios and focused on digital solutions, these lenders represented almost one-fifth of loan offers made to SMEs via Funding Xchange in September. And businesses are benefitting; the 28 per cent of businesses reporting zero or positive impact from the pandemic are enjoying more than three times as many offers of funding as compared to the height of the crisis.

          Less positive is the indication that, whilst lenders are returning, approvals are heavily weighted towards better quality credits, and more to established businesses than small and micro-businesses. 8 out of 10 those supported had been established for more than four years, and 9 out of 10 had an annual turnover in excess of £100k.

          Katrin Herrling, Chief Executive of Funding Xchange said, “there are some reassuring signs showing through in this quarter’s monitor. History tells us that it is frequently in the economic recovery stage that businesses need additional cash flow. If the indicative trends in the monitor continue then it is likely that funding will be available to support the recovery for established businesses, but the signs are that the smaller and newer businesses may well still struggle to access the liquidity that they need, and a continuance of the government-supported schemes for this sector may well be required.”

        • Stay up to date - Click here and register for FREE Channel Info online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the Channel Info app

        • Related Articles

        • Training for channel partners more important now than ever

          Training for channel partners more important now than ever

          Thursday 26th Nov 2020
          As organisations of all shapes and sizes continue to struggle, cutbacks to various parts of the business are understandable. However, unified communications and collaboration specialist TelcoSwitch believes that now is the time for technolo...Read More...
          87% investors say sustainable investing is more important since COVID-19

          87% investors say sustainable investing is more important since COVID-19

          Monday 23rd Nov 2020
          A new survey shows that COVID-19 is accelerating the need for a more sustainable approach to investing – and highlights that start-ups will play a key role in tackling sustainability challenges that lie ahead. Key findings: • 86.7% belie...Read More...
          Konftel reveals world of work has changed forever

          Konftel reveals world of work has changed forever

          Tuesday 10th Nov 2020
          Around 70 per cent of workers are set to continue operating in some capacity from home once the second national lockdown and COVID crisis is over – providing further evidence the ‘new normal’ is here to stay. Research, highlighted ...Read More...
                • About Us

                  Channel Info is the leading source of business news and information for the office dealer and reseller market. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, supplements, website, digital editions, apps, newsletters and bespoke communications with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the team behind Channel Info has over 60 years experience collectively in the office products, furniture, equipment and technology markets Channel Info continues to develop and adapt in order to meet the changing information needs of its readers.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue