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Are we finally getting back to growth?

Our brokers seem to think so

Stephen Spinks Senior Business Development Manager Allica Bank

This year is looking like it will shape up a lot brighter for businesses than last year – according to Allica Bank’s latest broker survey, at least. Of the 164 brokers we polled in December, 85% said their SME customers were feeling confident about business growth in 2022, with a quarter of all surveyed saying they were feeling ‘very positive’ .

It comes on the back of a strong recovery in the SME sector, the extent of which took many by surprise. Over half of the brokers we surveyed said the SME sector recovered better than they had initially expected once most COVID restrictions were lifted last summer.

Similarly, there is high confidence among our broker partners for 2022 even if new restrictions are put in place. 60% of respondents told us that Britain’s SMEs have ‘learned to live with COVID’, suggesting that the impact would be far less than what we saw in 2020 or 2021.

Many of those we polled also pointed to those industries set to bounce back as reasons for businesses to be optimistic for the year ahead, like hospitality and tourism. I must say, it feels good to be positive again.

Getting back to business

The outlook for brokers is similarly positive. After all, with growth ambitions comes the need for finance to fuel that growth. I predict a surge in businesses looking to release capital tied up in their existing properties this year to help them achieve those goals. Lessons will also have been learned from the pandemic, and we may see many more businesses explore ways to diversify their income streams to protect themselves from future disruptions. Not wanting to be too stretched operationally, a more hands-off approach like investing in commercial property could continue to prove attractive.

What’s more, the fact that many of the big banks have shied away from new lending magnifies this opportunity. Their appetite remains very cautious, with many still feeling the strain of CBILS and BBLS, and others choosing to reduce their exposure to certain sectors or geographies. This could result in an influx of customers in the market for a new lender, and many of them for the first time, too!

Stepping up to the plate

The specialist experience and market knowledge of the broker community will therefore be in real demand this year. Allica has long championed the importance of this expertise in ensuring businesses bounce back from the pandemic sustainably and suitably – and this looks no truer than in 2022.

“60% of respondents told us that Britain’s SMEs have ‘learned to live with COVID’, suggesting that the impact would be far less than what we saw in 2020 or 2021