2023
9
UK Commercial Borrowing Market Report 2023
2023-11-10T04:01:35+00:00
REP2CE3D953_7632_42EE_B600_362AC88598F7
1495
167956
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Report
en_GB
The rising cost of borrowing has changed the strategic objectives of some firms and it is vital that lenders adapt to these and offer support in challenging times. Lewis…

UK Commercial Borrowing Market Report 2023

£ 1,495 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Commercial Borrowing Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest commercial borrowing market research, trends and consumer behaviours affecting your business. Get a 360° view of the commercial borrowing UK market, including market size, share and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • The impact of current economic conditions on commercial borrowing UK and how lenders and borrowers alike have reacted to market dynamics.
  • Whether alternative lenders can truly disrupt and obtain market share from the main high-street lenders.
  • The value of the commercial borrowing UK market in 2023
  • Five-year outlook for the commercial borrowing market UK, including forecasts for gross lending and loan write-offs.

Commercial Borrowing UK Market: Overview

With successive Bank Rate rises, the cost of obtaining new finance has risen for firms. This has led to investment and expansion plans being delayed or scrapped, as some experience their own cost of living crisis. Business performance is vital for wider economic growth so lenders need to be flexible in the products they provide.

  • Commercial borrowing market size: Mintel forecasts that gross lending will rise by 3% per year until 2028.

Commercial Borrowing UK Market: Challenges and Opportunities

Demand for green finance

As net zero targets edge closer for all businesses, the demand for and interest in green and sustainable finance products continues to grow. However, there remains a lack of clarity on the green finance options available and for what purpose they can be used.

Importance of alternative finance

With banks tightening their lending criteria and focusing on lower-risk sectors, there is a significant opportunity for alternative finance providers to fill funding gaps in other areas.

  • Commercial borrowing UK: The amount owed by large businesses has risen to £338.6 billion in August 2023.

Purchase our UK Commercial Borrowing Market Report to receive a five-year forecast, consumer behaviour analysis, and recommendations for market opportunities.  Readers of this report may also be interested in UK Commercial Mortgages Market Report 2023.

Leading Brands in the Commercial Borrowing UK Market

Barclays, Funding Circle, HSBC UK, Lloyds Banking Group, Natwest Group, Santander, Shawbrook.

Expert Insights from a Finance Analyst

This report, written by Lewis Cone, a leading research analyst, delivers in-depth commentary and analysis to highlight trends in commercial borrowing UK market and add expert context to the numbers.

The rising cost of borrowing has changed the strategic objectives of some firms and it is vital that lenders adapt to these and offer support in challenging times.

Lewis Cone - Research Analyst

Lewis Cone
Associate Director – Financial Services

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the commercial borrowing market
    • Market dynamics and outlook
    • Graph 1: market size and forecast for UK MFIs' gross lending to NFBs, 2019-28
    • Graph 2: write-offs of loans to PNFCs from banks and building societies, 2022-23
    • Graph 3: company insolvencies in England and Wales, 2022-23
  2. Market Dynamics

    • Market size
    • Graph 4: MFIs' gross lending to non-financial businesses, 2021-23
    • Graph 5: MFIs' repayments to non-financial businesses, 2021-23
    • Graph 6: MFIs' net loans to non-financial businesses, 2021-23
    • Graph 7: total loan amounts outstanding to MFIs from non-financial businesses, 2021-23
    • Graph 8: M4 loans amounts outstanding from PNFCs, 2021-23
    • Market segmentation
    • Graph 9: total loan amounts outstanding to SMEs, by industrial sector, 2023
    • Graph 10: total loan amounts outstanding to large businesses, by industrial sector, 2023
    • Further segmentation
    • Graph 11: net new lending, by selected P2P lender, 2023
    • Graph 12: bridging loans market value, in aggregated loan balances, 2019-23
    • Graph 13: aggregated value of outstanding debt in loan books secured on UK commercial property, 2018-22
    • Graph 14: gross value of annual loan originations, 2018-22
    • Graph 15: SME lending, by type of finance, 2022
    • Market forecast
    • Graph 16: Industry performance following the last recession, 2012-16
    • Graph 17: forecast write-offs of loans to PNFCs from banks and building societies, 2024-28
    • Market trends
    • Graph 18: ICAEW Business Confidence Index, 2016-23
    • Graph 19: write-offs of loans to PNFCs from banks and building societies, 2018-23*
    • Graph 20: availability of corporate credit to PNFCs in the past three months, by business size, 2017-23
    • Graph 21: demand for corporate credit by PNFCs in the past three months, by business size, 2017-23
    • Graph 22: average annual interest rate for UK MFI new loan advances to PNFCs, 2019-23
    • Macro-economic factors
    • Graph 23: real GDP quarterly growth, 2022-23
    • Graph 24: Bank Rate, by date of adjustment, 2008-23
    • Regulation and legislation
    • Market drivers
    • Graph 25: company insolvencies in England and Wales, 2018-23*
    • Graph 26: PNFCs net rate of return, 2018-22
    • Graph 27: total business investment, 2018-22
    • Graph 28: mergers and acquisitions of UK companies, 2018-22
  3. Competitive landscape

    • Industry structure
    • Competitive strategies
    • Launch activity
    • Company profiles
  4. Appendix

    • Report scope and definitions
    • Data sources
    • Abbreviations
    • Methodology
    • Further sources and contacts

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