Brokers registered with the National Association of Commercial Finance Brokers (NACFB) increased their lending to small businesses last year.
A total of £45bn was loaned to small- and medium-sized enterprises (SMEs) by NACFB brokers in 2022 – a 10 per cent increase year-on-year.
88 per cent of the business lending done via NACFB member brokers was driven by growth ambitions, the trade body said. Just 12 per cent represented distressed lending.
The NACFB revealed that 29 per cent of this funding was given to SMEs which had been refused a business loan elsewhere.
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“The results demonstrate clearly the value of intermediary-led lending to UK plc and endorse what the NACFB community has long known; that small businesses looking to access finance are often better served by enlisting the support of a commercial broker,” said NACFB chair Paul Goodman.
“With many lenders withdrawing their high-street presence, commercial finance brokers have firmly stepped into the role of the modern-day bank manager; but with the added benefit of providing a wider array of funding solutions to their clients.”
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The NACFB is the UK’s largest independent trade body for commercial finance intermediaries. Many of these intermediaries work with alternative lenders to find the best financing solutions for their SME clients.
Economic secretary to the Treasury, Andrew Griffith, said: “We welcome the significant contributions of brokers in connecting small and medium enterprises with lenders, which will support these businesses to grow and thrive.
“Access to finance is vital for the growth and investment plans of British businesses.”
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