The National Association of Commercial Finance Brokers (NACFB) has released the results of its latest annual survey of its members, which show Total Commercial Lending to SMEs via brokers up by 14 percent year on year and totalling £8.6 billion, but, overall lending still remains at 44 percent of total at the peak of the market (£19.1 billion in 2007).
Chef Executive of the NACFB, Adam Tyler, reported on the results of the Asset Finance division, saying:
“Asset Finance went up by 3.5 percent… Our asset finance brokers in particular have struggle to find funders, but there has been an increase in the number of smaller lessors coming into the market, to try and fill some of the gaps in funding we have seen over the last few years.”
The gap-filling seems to have been successful, as several large brokers have been saying recently that funding is no longer a big issue, and that they have enough for the market demand.
The NCAFB reports the total Asset Finance business written by its members for the year to July 31st as £1.027 billion. The rise is welcome, but a curious aspect of the year-on-year comparison going back to 2005 is that Asset Finance business had been declining all the while from 2005 to 2009, and did not share the dramatic 2006-2007 burst of growth of the NACFB’s other members.
Source: www.leasingworld.co.uk
