Lender survey 2021

A re-evaluation: the impact of coronavirus on the UK lending market

As the impact of the coronavirus pandemic continues to be felt in the UK, lenders are increasingly re-evaluating their options. 

In June, RSM conducted a survey of 107 lending professionals across high street clearing banks, specialist banks, asset-based lenders and private debt funds, to assess the lending appetite of the UK market, the opportunities and challenges ahead and how this compares against lending during the peak of the pandemic. 

Watch our webinar below for an in-depth analysis of the survey results, which provide a snapshot of UK lender sentiment during the coronavirus pandemic and click on our key findings for a full breakdown.


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Lender survey 2021

Winners and losers

It has been good news for businesses across the UK with lending having increased hugely over the course of the coronavirus pandemic. However, segments of the market have fared differently.

Lender survey 2021

Lending higher in 2021 than 2020

The economic landscape of the lending market has been faced with uncertainty since the coronavirus outbreak. However, despite this uncertainty our survey respondents reported higher lending transactions this year than last.  

 
Lender survey 2021

Lenders expect increase in borrowing demand

Lenders are anticipating the demand for borrowing facilities to increase over the next 12 months. Only 6 per cent of respondents said that they expect less demand for their facilities.

Lender survey 2021

Lenders expect little change to debt pricing or credit appetite

A small minority of lenders expect reduced demand for facilities in the upcoming 12 months, with a strong forecast that lending will accelerate.

Lender survey 2021

Insolvencies are expected to rise

Due to Government support throughout the pandemic, corporate insolvencies sit at unprecedented levels, but this is expected to change. 93 per cent of respondents to our survey indicated that they expect an increase in corporate insolvencies over the next year. 

Lender survey 2021

Borrowers will need to prove that they are back on track

Many companies will have seen depressed EBITDA during the coronavirus period. They will now be looking to refinance, or raise finance, for an event such as an M&A transaction. In order to raise funding based on their ‘normal’ EBITDA, it will be important to show lenders that they are back on track.