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Business lending 'should be a Budget priority'

Date Added: 18/03/2011  

Business lending needs to be the centrepiece of next week's Budget speech by the chancellor George Osborne.

This is according to the chief executive of the Forum of Private Business Phil Orford, who stated that banks are claiming demand for loans is down.

But he insisted that if applications are being approved at a rate of 80 per cent, the banks are going to need to come up with a plan to boost business lending by 15 per cent.

"I believe the answer is that they must review risk criteria and be less punitive on viability assessments - and make a particular effort to cut down on sector-based discrimination," said Mr Orford.

He added that key criteria also need to be communicated more clearly to firms applying for loans so they have a better chance of having business lending granted.

Andrew Bullard, head of business at invoice finance and factoring broker Cashflow UK, recently stated that the government needs to provide answers regarding business lending.

Posted by Julie Cutts 

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