Challenger and specialist banks lent small businesses more than traditional banks in 2022
IN BRIEF:
- Gross bank lending to smaller businesses in 2022 was £65.1 billion, of which 55% came from challengers and specialists, according to data from the British Business Bank
- The data show a drop in demand for external finance - in Q3 2022, only 33% of smaller businesses were using external finance vs. 44% the year before
- Survey findings also show that success rates for those seeking loans fell sharply from 80% to 64% year on year.
What does this mean?
Louis Taylor, CEO, British Business Bank, says: “Today’s report finds strong growth from challenger and specialist banks, as well as asset finance provision, as businesses seek alternative finance options. There are promising signs of growth in the net-zero deal sector as equity finance markets respond to growing demand for investment in green innovation."
