19th October 2020
Funding Xchange is seeing a steady growth of lenders returning to its platform, according to data exclusively revealed to AltFi.
The coronavirus spread across the UK came alongside a challenging period for smaller firms needing to access finance. Cash from non-bank and traditional lenders dried up until the intervention of the of the government to back a series of lending schemes including the Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS).
Today, it says nearly 90 per cent of offers on its platform is for non-BBLS/CBILS cash, compared to less than three-quarters in June.
“Especially, where the CBILS scheme had pushed lenders out of their comfort zone into higher-value segments, we are seeing lenders return to their roots by testing solutions and deploying funding with increased confidence in the sub-£50k space,” Funding Xchange said.
“We are also seeing the return to the market of a few lenders after ‘sitting out’ the crisis. Having kept their powder dry, these lenders are now exploring market opportunities by focusing on businesses that were not eligible for the government support schemes as they performed well during the crisis,” it added.
The data is contained in Funding Xchange’s latest SME Lending Monitor.
This article was published in AltFi 19th Oct 2020