At LDF, we understand that SMEs are chomping at the bit to access funding to fuel their growth. That is why we are expanding our small business lending to meet the demand from British SMEs for funding to invest.
A sign of how important it is for new funders to enter the market can be seen in the increase in small businesses asking the Financial Ombudsman Service to intervene in disputes over bank loan and overdraft facilities.
Data shows that the number of complaints received by the Financial Ombudsman Service (FOS) from small businesses about loans and overdrafts from banks increased from 612 in 2012 to 816 in 2013.
Our Managing Director, Peter Alderson says: “Despite the improving economy, funding problems faced by SMEs – even those with strong balance sheets and excellent growth prospects – have not gone away.”
“Unfortunately, the banks are caught between a rock and a hard place. On the one hand they are limited by requirements to shrink their balance sheets and pressure to take a more cautious approach to lending, while on the other they are being expected to increase their lending to SMEs.”
Here at LDF, we have sharply increased the amount of funding we aim to provide to small and medium businesses through leasing, in which businesses can spread the cost of capital expenditures over a more convenient period.
Peter adds: “We are looking to step in and fund more SME capital investments than we ever have before.”
“Britain’s small businesses are ready to start investing, and at the moment there is a lack of access to the funding they need to invest in assets and grow. We’re aiming to play a big part in helping SMEs take full advantage of economic growth.”
“Our relationship with our broker partners is going to become ever closer over the coming months, and funding more deals for brokers’ SME clients will be an important part of that process.”
Source: Current FOS data.