Research and Markets (http://www.researchandmarkets.com/research/d82zw6/unsecured_loans) has announced the addition of the "Unsecured Loans to Business in the UK Key Trends and Opportunities to 2019" report to their offering.
The main theme throughout the review period was new lending recovering and growing substantially in the latter years 13.4% thought 2014 but the outstanding stock of business lending continued to fall due even sharper growth in repayments, which reached 15.3% in 2014 from 2013.
The government has made several attempts to reinvigorate business lending over the last couple of years, however its projects have failed to have the desired effect. The flagship Funding for Lending scheme (FLS) began slowly and fell short of its initial GBP80 billion target by GBP20 billion in 2012. However, improvements have been made seen since 2014, and a substantial increase in the money lent through the FLS directly led to both outstanding stock for small and medium enterprises (SMEs) and new term lending to large business increasing. Project Merlin - the Government's agreement with the big four' banks to increase lending to small businesses fell GBP1.1 billion shy of its initial target.
The rise of the emergency 0.5% bank rate is set to make access to credit more expensive for banks, and subsequently, for businesses. With banks already wary of lending to smaller businesses, this may result in a decline in loan approvals, while businesses themselves are likely to be deterred by the prospect of more expensive loans. The Office for Budget Responsibility (OBR) altered its forecast in March 2015 and anticipates the rise to occur in mid-2016, as opposed to later this year. This gives banks and businesses extra time to prepare for the additional costs while the economy grows.
The industry is dominated by mainstream banks, with the big four' of Royal Bank of Scotland, Lloyds, Barclays and HSBC controlling over 80% of the market. Regulations and high costs make it a difficult industry to enter. Therefore, any real competition is sparse, although peer-to-peer lending has risen sharply over the last few years it almost doubled in 2013 after offering smaller businesses a viable alternative if bank loans are unavailable or too expensive.
Key Topics Covered:
1 Executive Summary
2 Introduction
3 Market Analysis
4 Economic Backdrop
5 Competitive Landscape
6 Regulation and Policy
7 Deals
8 News
9 UK Retail Banks
10 Statistics
11 Appendix
Companies Mentioned
- Santander UK Plc
- Royal Bank of Scotland Group Plc
- HSBC Bank Plc
- Barclays Plc
- Lloyds Banking Group Plc
- HSBC
- Nationwide
- Zopa
- Funding Circle
- RateSetter
- Market Invoice
- Lend Invest
For more information visit http://www.researchandmarkets.com/research/d82zw6/unsecured_loans
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730006390/en/
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Sector: Banking and Financial Services, Credit and Loans