4,270 new businesses were created in 2017, and 8,053 jobs created or saved, thanks to support from the UK’s Responsible Finance industry, according to research published today (07.12.2017).
The figures, published by “Responsible Finance” in their report “Responsible Finance: The industry in 2017” also reveal that 93% of the business customers lent to by responsible finance providers in 2016-17 had been declined by other lenders.
The businesses the industry lends to are viable businesses, but often deemed too risky or unprofitable to lend to by mainstream banks due to lack of a trading history or their small scale.
“Responsible finance providers are a critical source of finance helping these businesses and micro enterprises contribute to employment and job creation, including in some of the most deprived parts of the UK,” according to Jennifer Tankard, Chief Executive of Responsible Finance.
The report also describes how £0.25 billion was added back to the economy in 2016-17 through responsible finance lending to businesses with 64 businesses and 88 jobs created as a result of every £1m lent by the responsible finance industry.
Furthermore, 12 specialist responsible finance providers lent £141.7 million to 363 social enterprises during 2016-17; and £22 million was lent to 55,348 individuals, meaning the industry as a whole has supported 34% more customers in 2017 than 2016.
But the UK’s 27 responsible finance providers that lend to businesses that struggle to get finance from the mainstream banking industry lent 35% less to businesses in 2016-17 than the previous year, despite strong demand, according to the report