New data provided by UK Finance showed that SME lending more than double in the first three quarters of 2020 compared to the total in 2019. The data showed that the gross lending to SMEs in the first three quarter of 2020 totalled to over double the total annual lending for 2019, reaching £54 billion.
During an unusual year for businesses in all sectors, the UK banking and finance sector has undoubtably delivered an unexpected and unprecedented level of support to UK businesses, particularly those affected by COVID-19. Many SMEs affected by the ongoing pandemic sought after much needed government-backed support from lenders across the country which resulted in an annual total of £54 billion. The Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) were put in place to support businesses who had been negatively affected by the ongoing pandemic. These schemes were issued to businesses alongside package support from lenders, including Invoice Finance. Since the extension of the government’s support from November 2020, UK Finance estimated that £600 million of funding was made available through topping-up of existing Bounce Back Loan (BBLS) facilities.
Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said:
“2020 was a challenging year with the disruption of Covid-19 restrictions and uncertainty ahead of the end of EU transition. The UK’s banking and finance industry continues to support businesses of all sizes across the country to help them trade and invest for recovery,”
“Gross lending in the first three quarters of last year was more than double the annual total in 2019, boosted by over 1.5 million businesses borrowing with government-guaranteed facilities totalling over £68 billion. SME financing was particularly in demand in the service industries, which were amongst the hardest hit by the pandemic.”
The finance sector has played an integral part in supporting UK SMEs throughout the ongoing pandemic through the implementation of BBLS and CBILS loans as well as previously standing finance solutions such as Invoice Finance. At Skipton Business Finance, we are proud to have continued to support businesses through this challenging and unprecedented time. We continue to work hard to deliver a high quality of service to our clients and to deliver effective Invoice Finance solutions to businesses across the country.
Find out more about Invoice Finance from Skipton Business Finance here.