If you’ve ever thought about starting your own business, now’s the time to do it - or at least according to new research.
Over the past 12 months, lending to small businesses has soared to a record high, meaning new business ventures as well as those looking to expand could well be in luck.
Lending to small businesses up by 30%
In the last year, lending to small businesses has risen to £20.7 billion - the highest it’s ever been, according to the latest figures from the National Association of Commercial Finance Brokers (NACFB)
This is the seventh consecutive year of growth for small business lending, which started to bounce back almost immediately after the 2007 recession.
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Slow growth for alternative finance
However, growth has been slowing down in the alternative finance sector. Crowdfunding and peer-to-peer lending written by NACFB brokers has dropped by 14.4 per cent.
“Interestingly, the figures show that there has been a significant switch by small businesses back to traditional forms of lending.” said Adam Tyler, chief executive at NACFB.
According to Tyler, the rapid pace of growth in the alternative finance sector was unsustainable.
“Peer-to-peer will always have its place, but alternative forms of funding are no longer the only future; they are just one of many forms of finance available to small and medium sized businesses.”