The National Association of Commercial Finance Brokers (NACFB) said it has maintained “constructive dialogue” with the Treasury about the need for support for businesses once government loan schemes end.
NACFB chairman Paul Goodman and managing director Norman Chambers shared feedback that a drop in appetite for growth funding from some lenders was impacting small- and medium-sized enterprises (SMEs).
They also sought clarity on whether businesses that have obtained a coronavirus business interruption loan scheme facility would face difficulties when seeking finance in the future, and what future government-backed loan schemes may look like.
The association, which has partnerships with peer-to-peer lenders Funding Circle and Proplend as well as former P2P platform Landbay, also raised the fact that some lenders are currently not allowing the opening of new business accounts.
“Throughout the pandemic, the NACFB has maintained a dialogue with Treasury officials, sharing feedback on the intermediary-led market and wider lending conditions,” Chambers said.
“We have successfully highlighted the impact of reduced appetite from some players in the market, and brought into sharp focus just how the increase in professional indemnity insurance premiums is a further hurdle for brokers.
“We continue to assert a constructive dialogue with the Treasury team, we share the common aim of ensuring SMEs have greater access to finance heading into the post-pandemic phase.
“Our aim is to that when government-backed loan schemes draw to a close, SMEs are fully aware of the myriad options that remain. There is tremendous opportunity to position commercial finance brokers – and their lender partners – as expert authorities on access to critical cashflow.”
The NACFB contacted its members in the summer to ascertain how many businesses were being rejected for bounce back loans.
This was in response to MPs warning tens of thousands of businesses could go bust due to being unable to access the scheme.