4R Blog

RSS Feed

Bank of England reveals business lending data

Date Added: 22/01/2013  

Business lending in the UK shrunk towards the end of 2012, according to new data revealed by the Bank of England.

It was noted by the Bank that the annual rate of growth in the stock of lending to UK businesses was negative in the three months to November, while the stock of lending to small and medium-sized enterprises (SMEs) and large businesses also contracted over this period.

"Official data covering lending by all UK-resident banks and building societies indicated that the stock of lending to businesses fell by around £4 billion in the three months to November," said a report released by the Bank of England.

However, the study did note that larger companies now have more options when it comes to business lending than they did in the past, though it may still be as hard to access loans.

SMEs are continuing to find it difficult to get funding for the growth of their company and some may even be left in a position where they need to take company debt advice in order to avoid the threat of being served with a winding up order.

"Net lending - defined as gross lending less repayments - to SMEs by all UK-resident banks and building societies remained negative in 2012 Q3," it was noted in the business lending report.

Commenting on the results of the research, chief executive officer at borro Paul Aitken stated it will come as no surprise that business lending was down in the UK towards the end of 2012.

He described the news as "bleak" for owners of SMEs around the UK, pointing out that there is little to show the Funding for Lending Scheme has had a positive impact since it was launched by the coalition government last year.

"It would seem that UK businesses, which should be seen as the beating heart of the UK economy, will remain caught in a credit drought for the time being," said Mr Aitken.

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