Lack of Bank Lending Still Hampering SMEsJune 19, 2012
It has been suggested that small businesses are facing a new credit crunch, which is denting confidence and restricting growth; even as the government launches an £80 billion scheme to boost lending.
According to research by the Federation of Small Businesses (FSB), who findings were published earlier this month, banks are rejecting more than four in ten firms who seek financing; which the FSB say is hampering the economic recovery.
Along with revealing that banks are rejecting more than four in ten firms seeking finance; the FSB also gave a cautious welcome to plans announced by the Chancellor, George Osborne, to boost bank lending to both individuals and businesses through the £80 billion credit scheme which is to be administered by the Bank of England.
A spokesperson for the FSB said: “We welcome the Chancellor’s funding for lending scheme but it will be delivered through the banks. None of the previous bank-led schemes has been an unparalleled success in funding the real economy. This scheme must be different”
The FSB added that small firms will only be able to access the finance they need when there is more competition in the banking sector.This entry was posted in SME. Bookmark the permalink.