Commercial mortgage lending is on the increase, but it is claimed that too many small firms are still struggling to obtain it.
Small and medium-sized enterprises (SMEs) are struggling to obtain
commercial mortgage finance, according to experts.
The National Association of
Commercial Finance Brokers (NACFB) claims that while banks may be lending more, costs associated with borrowing have also increased.
Commercial mortgage lending to SMEs is up 19 per cent year-on-year, the group's research indicates, but still an average of one-third of smaller firms have their applications rejected.
This situation must change if SMEs are to drive Britain forward economically, according to NACFB chief executive Adam Tyler.
"These businesses need to feel confident when they are considering borrowing, as many are falling at the first hurdle and not even making it in to the current statistic," he said in a statement.
Last week, the Forum of Private Business claimed that many high street banks are undervaluing
commercial development assets when companies try to use them as security for business loans.
Posted by Lisa Fear.
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