Ultimate Finance provides over £500 million of total funding in Q1 with new business volumes up 12 per cent
Bristol-based specialist asset-based lender Ultimate Finance provided funding of more than £500 million to UK SMEs in the first quarter of 2023, with new business volumes up 12 per cent on last year and 320 new facilities to help keep business moving.
Working Capital new business was up 25 per cent on Q1 22 as the demand for invoice financing solutions grew alongside a steady upward trend in existing facility utilisation rates.
New records were set in asset finance with total loan book size up 20 per cent and new business volumes up 27 per cent, including the highest ever month in March.
And the firm's bridging finance loan book grew 28 per cent in the last six months with strong demand for refurbishment and development finish & exit products.
Josh Levy, CEO of Ultimate Finance, said, "Whilst the recent failures of banks such as Credit Suisse and Silicon Valley Bank brought back memories of the financial crisis in 2008, we don’t see significant systemic pressures and are not viewing this as a game-changing event in the same way.
"That said, whilst the immediate banking crisis risk appears to be over, there will likely be a lingering impact in terms of a tightening of credit conditions with meaningful fund flows out of bank deposits into money market funds putting pressure on banks to hold back on some lending to households and businesses.
"These incidents have once again shown the hidden vulnerabilities that can exist in the stability of financial institutions and a reminder of the significant value that should be placed on a lender’s funding strength and liquidity profile.
"Whilst the backdrop generally remains challenging, SMEs have – as ever – remained resilient and focused on growth opportunities, and the specialist lending market remains buoyant and liquid, with lots of capacity to lend as demonstrated by our volumes and those reported by others in the sector.
"A concern coming into this year is how SME demand for finance would hold up in the face of overall uncertainty and a higher cost of borrowing, but the adviser and broker community has played a key role in supporting borrower demand and giving businesses confidence to pursue available opportunities with the assurance that funding availability remains plentiful.
"We expect the rest of this year to remain focused on a greater use of strategic funding options to support working capital and investment needs, and we are confident in the value of our solutions such as working capital, asset and bridging finance, as well as our asset-based lending structured finance option."
