As concerns around a recession fall, over a quarter (26%) of SME finance experts say that small businesses are mostly seeking higher-value loans of over £100,000 – up from 15% the previous quarter.
Demand for smaller loans is waning in line with SMEs’ focus on larger loans, suggesting growing demand for longer-term funding, as opposed to smaller loans to ease short-term cash flow concerns. In Q4, just two in five (40%) brokers said loans of up to £50,000 were SMEs’ most popular choice, an 8pp drop since Q3.
Despite growing demand for high-value finance, SME financing options at traditional banks are being scaled back. Three in four (77%) brokers note that high street lenders are reducing their appetite for funding SMEs.
https://www.financialreporter.co.uk/demand-for-larger-sme-loans-climbing-as-recession-fears-ease.html