4R Blog

RSS Feed

Aldermore 'takes balanced view' on business lending

Date Added: 18/01/2013  

Small to medium-sized enterprises (SMEs) in need of funding are increasingly looking away from the big names on the high street for their business lending needs.

Aldermore is one of the rising lenders in the sector and it is expected to continue making waves in business lending during 2013.

Speaking to the Daily Telegraph, Aldermore chief executive Phillip Monks claimed that demand for funding from SMEs now outstrips supply.

He told the newspaper that there are a lot of SMEs in the UK that are being turned down for loans when they should be handed the money to fuel their growth and boost the economy as a result.

"In this country we tend to focus on the big four or five banks and if you look at supply for SME customers it has been shrinking. Irish and Icelandic banks are not lending and other foreign banks have left these shores," he said, adding: "Often SMEs find themselves refused credit, not because of the quality of their business but because the bank to whom they have applied has made a strategic decision to shrink its lending book."

Mr Monks noted Aldermore has found it does not need to spend a lot of money advertising its services to SMEs, as they tend to hear about its successes from their friends and fellow companies and then come to the bank for help.

He explained there are many reasons why a business might need to apply for a loan, including to help with cashflow, to buy a new plant to boost production and to purchase new premises due to the fact that rents on commercial buildings have rocketed over the course of recent years.

Business lending has proven to be a major obstacle for the coalition government and its latest plan for the sector is the Funding for Lending Scheme, which offers banks incentives to increase the amount of money they lend to UK SMEs.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback