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Nationwide to enter business lending market

Date Added: 27/11/2012  

Firms in need of company debt advice as they attempt to avoid being served with a winding up order will be able to apply for loans from Nationwide in 2014.

The building society announced in its latest interim results statement that it will be entering the business lending market in the next couple of years.

Chief executive of the organisation Graham Beale described small businesses as crucial to the health of the economy in the UK and stated Nationwide will ensure it brings its "values and standards as a mutual" to the market.

"Our plans are progressing well and we are building the team and infrastructure we need to implement a strong and compelling offering in this sector," he said in the statement.

Nationwide also revealed that its gross residential mortgage lending hit its highest point for the last four years in the half-year to September, announcing it lent more than £10 billion, taking a 14.4 per cent share of the market.

Small to medium-sized enterprises struggling to access loans may therefore be looking forward to the organisation providing business lending facilities as another option on the high street.

Nationwide added that it enjoyed a "strong" trading performance over the course of the six-month period, along with "the first material improvement in our net interest margin since the onset of low interest rates".

The Bank of England's Monetary Policy Committee has held the base rate of interest for the UK at 0.5 per cent since March 2009, with no sign of a rise in rates imminent.

A recent report by the Sunday Times claimed the government has held talks over the possibility of converting publicly-owned Royal Bank of Scotland into a new business lending facility and renaming it as Williams & Glyn's.

The Conservative-Liberal Democrat coalition is seeking ways to improve the flow of credit to small firms in the UK to boost the economy.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

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