Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

MarketFinance COVID-19 Business Insights Report

Kriya Team
December 21, 2020
min read
Share this:

We've created a snapshot of how this ‘unprecedented’ year has affected the UK's SMEs. The signs of recovery are very much alive

At MarketFinance we’ve been helping small businesses access the funding they need to grow since 2011. This year has obviously presented enormous hurdles for many businesses, of every size. As a lender, we’ve seen firsthand how challenging the pandemic has been for SMEs across all industries, sectors and regions.

Over the past nine months we’ve been able to support small businesses across the country and have taken the time to document and record the changes and impacts we’ve noticed. While we’re under no illusion that recovery will be immediate, we have noticed signs of strength returning to small businesses. In our 2020 Business Insights Report, we've created a snapshot to understand how this ‘unprecedented’ year has affected different businesses.

The report pulls together key lending insights from 2020, including:

  • The amount we lent to businesses across the UK between January and November 2020 increased by almost 4% year on year.
  • The profile of companies using invoice finance changed significantly during COVID-19. Businesses using invoice finance were bigger than usual and received 83% more financing on average than they did in 2019.
  • Businesses in London, Hertfordshire, the East of England and the South West experienced the greatest drops in invoice financing year on year. These areas are hubs for the Administrative + Support Service and Information + Communication industries.
  • Demand for business loans soared with a 13-fold increase in loans between Q2 and Q3 2020. The majority of loans (60%) were made to businesses in Administrative & Support Services, Wholesale & Retail Trade, Manufacturing and Construction.

It’s our strong belief that small businesses will play a pivotal role in the UK’s economic recovery. Despite our second national lockdown, and strict regional restrictions, we’re seeing invoice finance begin to grow again. Although a lot of businesses have felt a negative impact over the past year, many have executed successful pivots and taken advantage of new opportunities that have presented themselves. At MarketFinance, we’re hopeful that this signals we’re past the worst of the situation.

Government-backed loan schemes, grants and tax holidays have helped keep businesses afloat. It’s also been encouraging to see business support networks around the country rally together to support businesses throughout the year. We expect this to continue into the next chapter. And what we’d like to see now is a move towards growth across lots of sectors, not just for the obvious winners. As we end this testing year, we’re looking at 2020 excited to carry on providing SMEs with the working capital they need to grow, innovate and build towards a successful future.

Click here to read the full report.

B2B Payments to boost your growth

To learn more about our payments and digital trade credit solutions book a call with us today.
Email is invalid.
Please use your company email address.
Annual Revenue*
We’ll use this information to get in touch with you about our products and services in accordance with our Privacy Policy. You can unsubscribe at any point. By submitting, you acknowledge we reserve the right to work with businesses that have been trading for a minimum of 12 months and have submitted at least one set of financial accounts.
Thank you. A member of the team will be in touch.
Oops! Something went wrong while submitting the form.

Explore related posts

how to use your flex loan

6 ways to use your flex loan

If you’re a regular around these parts you’ll have seen our flex loans cropping up quite a bit. Put simply, they give small businesses fast and flexible access to funds up to £100,000. We’re excited to see them put to work for a number of entrepreneurs around the country.

Freya Steveni
 min read
Read more
Industry Insights
Jul 15, 2021
How to use tech to streamline your business

How to use tech to streamline your business

Nowadays, business owners are less likely to question the extent to which technology could enhance and streamline their business. It’s clear that every industry has been changed and enhanced by everything from email to AI. Instead you might be wondering how it’s even possible to do business without relying on technology.

Freya Steveni
 min read
Read more