The Ernst & Young Item Club said the 2017 figure would be 40% higher than the £430bn expected to be loaned out during this year.
It has pencilled in a rise of 7% for 2014 and 10% for the following year.
Chris Price, UK head of financial services at EY, says: "Corporate lending won't increase enough in 2013 to compensate for the dire first half of the year, but we expect it to pick up more significantly in 2014, which raises hopes that UK companies may start to invest some of the cash currently sitting on their balance sheets back into the wider economy."
In its latest Outlook for Financial Services report the economic forecaster also suggests the crowdfunding industry may grow five-fold in the next few years and be lending around £1bn by 2016 predominantly to small and medium enterprises.
Carl Astorri, senior economic adviser to the Item Club, said: "Alternative finance for SMEs will not fall away just because business lending is going to bounce back.
"SME lending is still very expensive for banks, especially given some of the regulatory pressures on asset quality, and some of the funding gap will continue to be filled by non-bank lending."
Separate reports suggest Royal Bank of Scotland's UK retail boss Ross McEwan is the leading candidate to take over from Stephen Hester.
New Zealand born Mr McEwan has only been with the bank since August last year but is reportedly in pole position to be its new chief executive.
