Small business borrowing is on the up

 In Small Businesses & Startups

Small business borrowing has risen sharply in spite of political factors including an unfavourable budget and the triggering of Article 50.

This trend was revealed in a new report from the National Association of Commercial Finance Brokers (NACFB).

What are the report’s key findings?

The report found that the average value of funding requests submitted by small businesses in the UK rose 7% to £86,000 during March alone. This represents an increase of £5,000 within the month.

Despite this, the overall number of enquiries remained consistent with previous months.

These figures show that small businesses are bullish about growth, despite the hurdles that have arisen in their path.

Where is small business borrowing increasing fastest?

The report also broke borrowing down by region, providing useful insight into the areas where confidence is highest. Here’s an overview of the regions that experienced the most significant growth:

  • East Anglia (114%)
  • Scotland (104%)
  • North West (102%)
  • London (31%)

Despite these positive signs, the value of funding requests decreased in four regions, including:

  • Wales (82%)
  • North East (61%)
  • Midlands (51%)
  • South East (45%)

NACFB chairman Paul Goodman commented: “The UK’s smaller businesses have proved to be remarkably resilient to some of the budget’s more punitive measures and Article 50 uncertainty generally.”

“It’s encouraging to see overall finance enquiries holding firm and UK SMEs still turning to experienced brokers for assistance.”

This news reflects positively for small business owners as it seems they remain confident. However, the uncertainty posed by Brexit and the Spring Budget means keeping a close eye on your finances is a must.

Call on 3 Wise Bears to get more timely financial advice for small business owners.

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