Posted: Friday, 24 May 2019 @ 16:19
Each day new reasons for a loss of confidence seem to batter the SME market. However, with subtle changes in the market, independent lessors like Rivers Leasing find themselves more important than ever in supporting Britain's growing businesses.
The headwinds
If Brexit wasn't enough on its own, we are told that bank lending to SMEs continues to decline, especially in the large industrial and manufacturing cities. In fact only in the last couple of weeks Broker World reported that "over half of the country has seen bank lending to SMEs fall over the last year."
One reason for this apparently is that banks see higher risk in SME lending compared with corporate bonds. This may or may not be true, but there are still plenty of avenues for SMEs to secure finance.
The changing landscape
Although many SMEs traditionally look to their banks initially, a huge number of alternative potential sources have opened up in the last 10 years. Many of these sources are concentrated exactly where they are needed the most.Increasingly the challenge has been taken up by newcomer and challenger banks as well as independent lessors like Rivers Leasing. At the same time, distribution channels have adjusted particularly with the rise of intermediaries. Many of these intermediaries used to work for the banks and are often based in those business heartlands where need and demand is highest.
Turning tides
The combination of the wide spectrum of risk appetites and lending product from the funders, plus easy local access to the sales operations of the intermediaries, make a powerful solution to the apparent lack of support from traditional banks.Markets always find a way to adapt to changing circumstances and hopefully the perceived headwinds will turn and propel SMEs to a prosperous future.
See how Rivers Leasing has supported British SMEs