Allica Bank reaches £100m in committed loan offers since June
Allica Bank has reached £100m in committed loan offers since the end of the national lockdown in June.
Moreover, the bank’s total figure of approvals in principle in 2020 is over £250m.
Allica Bank has received over £1bn of SME lending enquiries since the end of lockdown, and has secured over £100m in deposits over the last six months.
A recent study of UK SME finance brokers by Allica Bank revealed that 64% have seen a significant reduction in the supply of business lending following on from the COVID-19 pandemic.
The survey also outlined that 99% of brokers see declining lending appetite as the biggest challenge in the SME market over the next two years.
Richard Davies, chief executive, Allica Bank, said: “The focus for government and mainstream banks has understandably been on providing support to those businesses most at risk from the impact of COVID-19.
“The reality, however, is that its led to a sharp fall in available credit outside of the government schemes, and with non-bank lenders unable to step in because of the funding issues they’re facing.
“Our research confirms that many established businesses, including those less affected by the issues around Covid-19, are seeing lending supply decline sharply, with a sizeable funding gap opening up for established, mid-size SMEs.
“These companies make up a quarter of the economy and are the very businesses that will help shape the economic recovery but feel they are being forgotten just now.”