Increasing numbers of brokers sent coronavirus business interruption loan scheme (CBILS) applications to lenders in January as businesses sought speedy access to finance, research has shown.
A broker survey by alternative lender Iwoca also found that 26 per cent more advisers sent CBILS applications to non-bank lenders in January compared with December.
It comes as the deadline for CBILS applications approaches on 31 March.
Two-thirds of brokers said that ‘speed of receiving a decision’ was the factor which most often played a part in deciding which lender to send a submission to, ahead of whether the amount requested met the lender’s offering.
The research found that cash flow was the key motivation for businesses applying for finance.
One in four brokers stated that to ‘grow the business’ was the most common purpose for a loan, whilst 20 per cent suggested that bridging cash flow gaps was the key driver behind finance applications.
“Brokers play a crucial role in guiding small businesses looking to take on finance, and this new index will provide a unique perspective of the small business lending landscape,” Christoph Rieche, chief executive of Iwoca, said.
“Our aim is to be able to better identify small business’ appetite for finance, and how lenders can provide the right support to help them grow.”