Bank Lending to SMEs Continues to Plummet

Peer-to-business Loans

Bank lending to small/medium-sized businesses is down by £400 million according to latest trends in a Lending report.

The Bank of England report, which brings together all available lending data, has shown that the Government’s Funding for Lending Scheme just isn’t working with SMEs finding it more and more difficult to get loans from banks.

According to the report £170 billion was loaned out in July, whereas in August it was down to £169.5 billion. And it isn’t only small businesses that are seeing the struggles. The FLS scheme is failing to benefit large firms too, with lending down £3.9bn to corporates in the three months to September 30.<...>

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RBS Poised to Enter P2P Space

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Royal Bank of Scotland is reportedly on the verge of a daring move into the peer-to-peer lending space.

Following on from the Santander-Funding Circle tie up in June, RBS will soon become the second major bank to wade into the UK peer-to-peer lending market. The news was broken by the FT – but was unfortunately somewhat short on detail. What has been confirmed is that RBS will be piloting an online peer-to-peer lending platform before the year’s end, thanks to a partnership with an unnamed third-party operator.

Further whisperings suggest that the platform will be SME facing, with a particular focus on getting funding to businesses that have been initially rejected by a bank...

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SME Demand for Luxury Asset Loans Continues to Grow

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The leading luxury asset lender, Borro, has announced that the company has hit the landmark of £100 million in funded loans to individuals and SMEs.

Borro, who launched in the UK 2008 and US in 2012, has seen great progress over the last 15 months and the demand from SMEs and the self-employed, that currently occupy 65% of its loan book, continues to grow. The average loan value for this sector has now increased to £30,000.

The luxury asset lender continues to innovate the asset-backed lending industry by offering fast and efficient luxury asset loans of up to £2 million secured against assets including fi...

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Problems ContinueTo Arise For SMEs

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Bank lending and managing cash flow are not the only problems facing SMEs as some new research discovers.

A recent survey involving 500 UK SMEs has explored the challenges that start-up companies have had to face since the crash of the market in 2008. The report looks at the conflicting factors affecting specific industries and how thriving SMEs are overcoming such issues.

The main challenge that continues to face SMEs is funding with companies still finding it very hard to get loans from banks. However, the rise of the alternative finance space has somewhat helped this issue and SMEs are now looking at different options including peer-to-peer lending and ...

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Major Bank To Reconnect With SMEs

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The Royal Bank of Scotland are reaching out to SMEs by launching a £1 billion lending-drive scheme.

The bank’s Small Business Fund is targeting new and existing customers by offering fixed rate loans of between £1000 and £250,000. Start up companies and micro-businesses will also be covered through the funding.

Scotland, London and the south west of England will receive an equal £140 million each to help support the small to medium sized companies.

The bank suggested that with the potential for interest base rates to rise in the near future it felt many small companies will find it attractive to have fixed repayments on their borrowing.

Les Matheson, chi...

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New £6 Million SME Fund Unveiled

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ECS Group has unveiled a £6m asset-backed loan fund for businesses in the Yorkshire, Lincolnshire and the North East regions.

The Elite fund is designed to help companies which have been unable to secure funding from traditional lending sources due to short term cashflow or profitability issues, or a lack of trading history.

The main focus will be on providing finance for the acquisition of income generating assets.

ECS Group managing director Andrew Craggs said:

"ECS Group have been helping local SMEs for over 15 years and the lack of funding support for the SME sector in the Yorkshire and Humber in recent years led to the creation of our new funding...

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SMEs See Little Difference Between Major Banks

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Yet more research into the SME funding plight has been undertaken – this time by leading invoice finance provider Platform Black.

The findings of this round of analysis have exposed a peculiar lack of differentiation by SME attitudes towards the big 4 banks. Nearly half of the country’s small businesses (47%) do not see any difference between the major high street banks. Only 10% of those same businesses believe that the big 4’s services top those offered by the new “challenger” banks such as Handelsbanken and Metro.

This latest survey – commissioned by Platform Black but carried out by YouGov – also found that the smaller busi...

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Peer-to-Peer Lending to Pass $1 Trillion by 2025

Peer-to-business Loans

Charles Moldow, General Partner at Foundation Capital, believes the peer-to-space will exceed the $1 trillion mark as soon as 2025.

The alternative finance space has been rife with lofty predictions of late, but none have been quite so extravagant as Moldow’s forecast. It is certainly true that peer-to-peer lending is on a steep upward trajectory. As AltFi Data continues to remind us, growth rates across the sector are consistently staggering. Rarely does a platform’s monthly expansion rate dip below 5%. If such performance continues over a sustained period of time, perhaps scale of the kind predicted by Moldow is inevitable...

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