Bank lending to small retailers falls 4% in just a year

by | Feb 11, 2019 | Business, News | 0 comments

UK bank lending to small and medium sized retail businesses has fallen by 4% in the last year. ?14.9 billion was lent this year, down from ?15.6bn the year before.
This is according to new research from Funding Options, an online business finance supermarket.
The funding has reduced as banks concerned over abilities to deal with retail challenges.
High streets are becoming hollowed out as more big retailers shift their focus to online.
Smaller retailers need more funding to enhance their websites and improve their high street offering to compete.
Smaller retailers risk going out of businesses as traditional forms of lending become harder to access.
Retailers are finding it tougher to get credit from their own suppliers. This also creates extra pressure on cashflow.
Insolvency Service data shows that insolvencies in the sector jumped by 13% in the year to September 2018.

Alternative lending

More small businesses are turning to alternative finance providers to combat the funding gap.
A recent report showed that the use of alternative finance options by businesses have increased in the last year.
Bank lending seems to be shifting away from smaller to larger retailers. Lending to large retailers has risen by 5% over the last year, to ?37.7bn in November 2018 from ?36bn the year before.
Conrad Ford, CEO of Funding Options?comments: ?Retailers struggling to get lending must not give up the ghost. There are other forms of finance other than bank loans.?
?Many small businesses have characteristics, such as seasonality. That can mean they have different risk profiles. Being a seasonal business can mean inconsistent income, and cashflow. This can make it hard to maintain the regular loan repayments.
?There are alternative financing options available that can support growth and investment. These options are often flexible and accommodating.?
?The more retailers are aware of these options, the better.?

more latest news ➡

Burgon & Ball wins four stars at RHS Chelsea Flower Show


Burgon & Ball, creator of beautiful garden tools since 1730, has won four stars from the Royal Horticultural Society for its stand at the RHS Chelsea Flower Show 2024. In its twenty-seventh year at the show, the Sheffield-based company has been honoured for the...

BOT shows catering performing well

Clothing and catering strong in April’s BoT figures

The Garden Centre Association’s (GCA) Barometer of Trade (BoT) for April is out and shows clothing and catering leading the way when compared to the same month last year. There was also a positive, 3.77%, year-to-date variance, but 10 of the 13 categories recorded...

Hozelock auto reel mobile

Hozelock unveils ground-breaking automatic hose system

The demands of modern gardening have evolved as consumers search for more convenient and efficient methods for an array of tasks, from planting and pruning to garden watering. This year, Hozelock has expanded its’ extensive hose storage offering with the launch of...

Squire's achieves peat free milestone

Squire’s achieves peat free milestone

Squire’s Garden Centres has confirmed that it no longer sells any bagged compost containing peat. The UK government proposed to ban the sale of bagged compost containing peat to home gardeners in England by the end of 2024. Although the ban is not yet in force,...

Horticultural manager wanted

Opportunity for horticultural manager

A garden centre in the Ipswich area is looking for a new horticultural manager to run the plant area. The new recruit will lead and develop a small team whilst enjoying the freedom to make decisions. Garden Centre Horticultural Manager £32 – 35,000 + Package &...

Read GCR's latest edition!

Subscribe ToThe Wednesday Word

Subscribe To
The Wednesday Word


Get all the latest news, events & more straight to your inbox every Wednesday.

You have Successfully Subscribed!

Pin It on Pinterest

Share This