The SME lending landscape in 2020
Industry News | 15/01/20
2019 was a tough year – for business and lenders alike. Although final quarter figures are not yet available, annual UK growth to September was just 1%, and both August and September showed a contraction in the economy. Atradius are predicting 2019 to have had a 10% increase in business insolvencies – the highest rate in Western Europe – with a further 5% increase next year.
Meanwhile the Bank of England have revised downward their forecast for growth for next year to just 1% – and that is dependent on the end of Brexit uncertainty, an orderly transition from the EU, and businesses being properly prepared. In this context, it is hardly surprising that the EY ITEM Club outlook on business investment shows lending growing by just 2.1% in 2020, the lowest level since 2015.
Source: Credit Connect
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