September 14 2016.

Small business lending has increased by almost 30 per cent (29.8 per cent) to £20.7 billion, according to the National Association of Commercial Finance Brokers’ (NACFB) latest annual figures.

The figures are based on business written by NACFB brokers between July 2015 and June 2016.

Over the past year, lending to SMEs has exceeded the pre-recession high of 2007. It’s also the seventh consecutive year that total lending to small businesses has grown. However, while traditional forms of lending, such as commercial mortgages, have had an impressive 12 months, with business written over £5.3 billion, up 54.8 per cent on last year, lending in the alternative finance space, which includes peer-to-peer and crowdfunding, has slowed.Business written by NACFB brokers over the past 12 months has fallen by 14.4 per cent, down from £848 million to £725 million.

The commercial mortgage business has benefitted from renewed confidence in longer-term lending, with a wider range of deals to choose from and an increased appetite from the traditional high street lenders. Since 2013, commercial mortgage business written by NACFB members has more than doubled, up from £2.23 billion in 2014.

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