NACFB Survey 2010/2011: 

• Total commercial lending to SME’s via brokers up by 14% year on year
• BUT overall lending still remains only at 44% of total at the peak of the market
• Invoice finance increases for the fourth year running, now double of that in 2007
• Buy-to-let mortgage lending increases by 46% but this follows huge drops in previous two years.

The National Association of Commercial Finance Brokers (NACFB) has released the results of its latest annual survey of its members. Chief Executive of the NACFB, Adam Tyler, commented: “We have continued to see the SME community struggling to raise funding and being faced with increased costs. Our latest figures reveal the true position of both excellent and vulnerable businesses across the whole of the UK.  Despite many lenders’ protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still very hard to access, but it has improved.  Whilst we are very pleased to report that there is an increase in lending over the last twelve months, this is now coming from a wider variety of lenders and is also being lent in a real variety of ways”

He continued: “Commercial Mortgages rose by just over 6% and Asset Finance went up by 3.5%, however short term lending rose by a whopping 180% over the last year. Our asset finance brokers in particular have struggled to find funders, but there has been an increase in the number of smaller lessors coming into the market. To try and fill some of the gaps in funding we have seen over the last few years. It is pleasing to see an increase in Development Funding of 103%, our members have been helping provide the cash needed by developers to build much needed new residential housing stock.”

“The increase in invoice finance for the fourth consecutive year shows that our members are seeking more cost effective borrowing where they can for their SME customers, as overdrafts limits are reduced but costs have increased. We have more than doubled the amount of invoice finance facilities we have been setting up and this is now just short of £1billion of new business in the last 12 months”

Adam Tyler added: “Around 90% of small businesses bank with the four main high street banks; when it comes to borrowing SMEs are now reaching out to a wider variety of lenders. NACFB members have access to 68 different providers of business finance for their clients. Businesses do want to borrow; they do want to grow. A recent survey of SMEs showed that only 16% had applied to their banks for borrowing, of which one third were rejected. These businesses need to feel confident when they are considering borrowing, and the NACFB now receives ever increasing numbers of introductions for new business from a plethora of different SME trade bodies. Our members are now sourcing new lines of funding and this is helping the SME’s in the UK to grow and invest”

• Rates from 1% per month
• Term – open ended unlike all bridgers
• 3 months’ interest on redemption
• Property types – all except development and filling stations
• Age – no maximum age
• Purpose of funds – no restrictions save must be for business use
• Amount of loan £50,000 to £1m
• Maximum Loan To Valuation 65% of a 90 day value
• Happy to take out a bridging lender
• Simple and quick

The commercial mortgage facility is TRUE non status. I often think that lots of people really do not know what this means. It means that we are only concerned about the property. We are NOT interested in

• Credit scoring
• Credit reports
• Accounts
• Payslips
• Bank statements
• CCJ details
• Business Plans

If you would like to know more about the product or would like to apply online please click here

The bad credit may have been registered to your Limited Company or you the Owner / Director. While the commercial mortgages are available on a non status basis commercial mortgages are assed individually on there own merits.

Bad Credit Commercial Mortgage – Product Overview

Loan Sizes: min £50,000.00 Max £250,000.00 with loans in the region of £100,000 to £200,000 being reviewed favourably

Loan to values: up to 60% of the 180 day market value of the property but taking account of the 90 day value

Property types / Acceptable Lending security

Examples: residential, retail, offices, warehouses, factories, garages, care homes, cafés and restaurants,

Limited priority on: farms/farm land, hotels, public houses (including working men’s clubs)

Exclusions: development (including development land), nightclubs, petrol stations, waste transfer sites, fish farms, caravan sites, golf clubs, commercial leasehold security and any other property which may be viewed upon as “exotic or extreme”

Location: Exclusions in more isolated rural areas (non applicable to farms/farm land)

Tenure: freehold only on commercial security, with min 125 years on residential leasehold security

For more information on commercial mortgages and how Enable Finance Ltd can help your business contact one of our Commercial Finance Advisor or why not apply on line for a Risk Free commercial mortgage quote.

Click here for a RISK FREE Commercial Mortgage Quote

Colin Bell, CEO of InterBay Commercial, said: “It is with great delight that I am able to announce an exciting new chapter for InterBay Commercial in the UK. Since our launch in 2006 we have experienced an amazing growth trajectory. We have created a great team, a strong brand and originated a portfolio of loans which are outperforming the market. It is testament to these achievements that we have been able to attract a new UK parent and provide a secure future.

Whilst 5D and Interbay are not currently lending this is very welcome news, for further commercial mortgage information please follow the link or call 0800 3161612

Commercial First says that the working capital facility together with the equity raising has enabled the business to secure long term stability after the market dislocation forced the lender to suspend new originations.

Enable Finance commercial mortgage division continues to offer commercial mortgages to business owners welcomes the news from commercial first and hopes this news is the first signs of liquidity to the commercial finance arena.