NACFB Survey: Members facilitate £45bn of borrowing in 2022
Lending to small businesses via brokers jumped 10% in 2022 to £45 billion, according to the NACFB’s annual survey results. The survey – full findings from which were published yesterday – also revealed an average loan size of £563,000 in 2022, up 23% on 2021. Notably, of the small businesses successfully funded via Member brokers, an average of 29% had already been refused capital elsewhere. Of the commercial lenders that operate both direct and broker-led business models, 70% of their new business came via the broker channel in 2022. Further findings reveal 88% of UK enterprises that borrowed via an intermediary were driven by growth ambitions, whereas only 12% of total borrowing was for reasons that imply more distressed factors. Commenting on the findings, NACFB Chair Paul Goodman said: “The results clearly demonstrate the value of intermediary-led lending to UK plc and endorse what the NACFB community has long known; that small businesses looking to access finance are often better served by enlisting the support of a commercial broker. With many lenders withdrawing their high-street presence, commercial finance brokers have firmly stepped into the role of the modern-day bank manager; but with the added benefit of providing a wider array of funding solutions to their clients.” The NACFB’s full 2022 survey results can be found in the latest issue of Commercial Broker magazine, available to read online now.
