DOES THE UK FACE A CREDIT CRUNCH? | Ryan Etchells

Podcast Radio Business Interviews

Ryan Etchells, Chief Commercial Officer, Together, UK’s largest specialist lender speaks to Clayton M. Coke of Podcast Radio Business to discuss DOES THE UK FACE A CREDIT CRUNCH?

Overly cautious banks and a lack of investment breaks and benefits from local and national government threaten investment and growth goals for SMEs across the country.

That’s according to new research from specialist lender Together which has revealed, on average, UK SMEs would like to invest £450,000 in their business over the next two years.

While many are confident they will be able to achieve this, barriers remain and cast aspersion over plans for growth and expansion, with the biggest ones being:

• A lack of investment breaks and benefits from local and national government (27%)
• Overly cautious banks (23%)
• Difficulty accessing finance for specialist lenders (23%)

Meanwhile, with the General Election a month away [in July 2024], SMEs would most like the next Government focus their first six months on introducing policies which prioritise:

• Reduce energy bills (49%)
• Increase tax breaks (39%)
• Improving access to finance (35%)
• Boost investment in the SME growth sector (33%)
• Remove red tape around business
• loan applications (26%)

This comes as only 55% admit they think the banking sector is supportive of small businesses, with 73% thinking mainstream banks are being overly cautious about lending.

Almost half (46%) believe they do not understand the needs of the average SME applicant, and 55% believe they will have a better chance of fulfilling business objectives if they identify an alternative finance source or provider.

Ryan Etchells, Chief Commercial Officer at Together, has said the sector will be carefully weighing up Sunak and Starmer’s pledges as it continues to face tough cost and labour challenges.

“Given that securing real economic growth will surely be a central plank of all parties’ election promises, we need to see concrete plans for the business community especially when it comes to providing adequate resource and support for SME recovery and future growth. Unlocking access to finance is certainly one element, but fundamentally it will take lenders, developers, and innovative funders to work together and ensure that – whatever the political outcome – that promises are not left empty and that a course is charted which provides in full what’s needed most.”

ADDITIONAL INFORMATION:

About Together

Togetherhas been delivering specialist secured lending for 50 years, using its wealth of expertise and industry knowledgeto consider individual circumstances to find a way to help its customers. All applications are considered on their merits and the product range includes residential mortgages, short-term finance, buy-to-let, commercial and semi-commercial mortgages and loans, auction finance and development funding throughout mainland UK.

Based in Cheadle, Cheshire, the company employs more than 750 colleagues and has a loan book of £7 billion. For more information go to https://togethermoney.com/

RESEARCH INFORMATION:

Research commissioned by Together and conducted by Opinion Matters between 17 – 21 May 2024 among 1,002 DMS/ Directors of SMEs. Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.