Brokers see rising demand for unsecured finance, study finds

Thursday 15 July 2021 12:00 CET | News

Demand for unsecured finance from SMEs is on the rise, according to iwoca’s quarterly SME Expert Index of UK brokers.

The index, which covers a four-week period in May, found that over a third (38%) of brokers had submitted more lending applications for unsecured finance compared to the four weeks prior to that, suggesting that SMEs are increasingly using credit to support their growth and recovery. Almost one in five brokers (19%) saw demand increase significantly – submitting 50% or more applications compared to the previous four weeks. This has risen from 14% of brokers citing the same in the Q1 index.

iwoca’s Q2 SME Expert Index is based on insight from UK brokers who collectively submitted over 1250 applications for unsecured finance on behalf of their SME clients in May.

Over half of respondents (55%) reported that the most requested unsecured loan amount they’d applied for on behalf of their clients was under GBP 50,000. Nearly one in five (17%) were most likely to request loans under GBP 25,000 – this is below the threshold of the government-backed Recovery Loan Scheme. 

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Keywords: lending, SMEs, SME lending, study
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: United Kingdom
This article is part of category

Banking & Fintech