Where we are seeing change is in the non-bank finance sector, which continues to expand. There are increasing numbers of non-bank lenders. These range from small private businesses essentially using private equity, to good quality lenders supported by securitized bank funding lines and corporate funds of equity. These non-bank lenders are increasing in size and capacity.

They support a wide range of lending secured by property, including business lending, bridging loans, property development funding and will support longer term mortgage lending opportunities that fall just outside of main bank appetite. We are also seeing increased activity from Fintech and debtor finance lenders providing business working capital lending. These lenders can provide an alternative to traditional bank overdraft facilities, which in the small business space has traditionally required supporting property security. Although the interest rates applicable to the Fintech lenders is higher than bank lending, these lenders tend to provide a much faster response. They will support business who are unable to obtain main bank financing.