Brokers are arranging larger funding requests under the Recovery Loan Scheme (RLS) compared to its predecessors, but the demand for RLS loans is comparatively lower.
The National Association of Commercial Finance Brokers (NACFB) annual member survey for 2021 found the average RLS facility size to be £539,281 – more than double the typical coronavirus business interruption loans agreed in 2020.
However, NACFB members said engagement with the RLS was lower than expected, with just 11 deals per brokerage.
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Half of the members said the main reason for reduced system activity was a lack of direct RLS requests, while 16 percent said their customers simply didn’t meet the system’s criteria.
The survey found that NACFB members helped raise £40.9 billion in loans from small and medium-sized businesses last year.
The average loan size was £458,582, an annual increase of 17 per cent, topping 2019’s figure of £450,145.
“The data proves what we in the industry have long known about the importance of the intermediary-led route to market for Britain’s 5.6 million SMEs,” said Paul Goodman, Chairman of the NACFB.
“The trade body continues to build stronger and deeper cross-party relationships within government and within the British Business Bank and Bank of England.
“We will be reaching out to any stakeholders who are interested in learning more about the essential work being done by NACFB members.”
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