SME lending reaches its highest level since 2008
Commenting on the news that non-bank lending to SMEs has reached its highest level since 2008, Damon Walford, Managing Director of Invoice Finance at Aldermore, Britain's leading challenger bank, says:
"It is a shame that the traditional High Street banks are still reluctant to lend to SMEs, which are the lifeblood of our economy. The UK can only flourish if SMEs are given the backing to succeed.
"Invoice finance is a fantastic way for SMEs to maintain a steady cash-flow. Worrying about lurching from one payment to the next is not a healthy way for any business to be operating.
"Our total lending to SMEs is now more than £1.6bn at Aldermore and we've supported many businesses that could not get finance from other lenders. We're committed to helping small and medium-sized businesses secure the finances they desperately need to grow their business.
"It's increasingly tough for small businesses to borrow money. Average interest rates offered to small enterprises stood at 4.84% in May 2013, up from the 4.59% average the previous year. In comparison, for medium-sized businesses the rate was just 3.3%.
"We hope that more players will be encouraged into the market to lend to SMEs in order to increase competition and the availability of credit in this sector. It is the only way that the UK economy will recover in the long term."
Aldermore is a new British bank and one of the best capitalised banks in the UK. With backing provided by AnaCap and Morgan Stanley Alternative Investment Partners, Morgan Stanley's Private Equity Fund of Funds business and new investment from the consortium of funds managed by Goldman Sachs Asset Management, Honeywell Capital Management and the Ohio Public Employees Retirement System, Aldermore raises deposits from consumers and lends to homeowners and small and medium sized businesses.
Aldermore participates in the Funding for Lending Scheme. Aldermore does not participate in investment banking or proprietary trading activity and has not been involved in any banking activities or the marketing of any exotic products which have been the cause of problems for so many financial institutions.
As a British bank, Aldermore is regulated by the The Prudential Regulation Authority (PRA) and The Financial Conduct Authority (FCA), which means customers' savings are protected up to the statutory limit of £85,000 per person under the Financial Services Compensation Scheme (FSCS). Aldermore is also a member of the Council of Mortgage Lenders.