Demand for bigger loans is rising amongst UK companies, based on new information from European small enterprise lender Iwoca.
Throughout the fourth quarter of 2023, 26 per cent of brokers informed Iwoca that probably the most requested mortgage quantity amongst small- to medium-sized enterprises (SMEs) was above £100,000 – the best degree for the reason that third quarter of 2022.
Iwoca recommended that demand for bigger loans signifies that SMEs are in search of longer-term funding, versus selecting smaller loans to ease short-term money move issues.
Learn extra: SME funding drought to worsen
Iwoca’s quarterly SME Professional Index additionally discovered that regardless of rising demand for finance, 77 per cent of brokers mentioned that top road lenders are decreasing their urge for food for funding SMEs.
In response to this, 71 per cent of brokers are submitting nearly all of their SME purchasers’ mortgage functions to different lenders.
“The SME lending market is strengthening, with rising functions for bigger loans and falling inflation hinting at a brighter future,” mentioned Colin Goldstein, business development director of Iwoca.
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“Nevertheless, various challenges stay, particularly with excessive road banks displaying restricted enthusiasm for lending.
“Stability and assist at the moment are important if we’re to see SMEs flip their optimism into development.”
The index additionally discovered that small enterprise house owners are much less involved a couple of doable recession, though excessive enterprise prices stay their prime fear. 45 per cent of brokers cited excessive inflation as the principle concern for SMEs, in contrast with simply 32 per cent a 12 months earlier .
Learn extra: SME housebuilders nonetheless wrestle to entry funding