The annual rate of growth in the stock of lending to UK businesses remained negative in the three months to February. The stock of lending both to small and medium-sized enterprises and to large businesses contracted over this period. Mortgage approvals by all UK-resident mortgage lenders for house purchase continued to rise, on average, in the three months to February. The annual rate of growth in the stock of secured lending to individuals rose to 1.1%. The annual rate of growth in the stock of consumer credit continued to be strong.
Bank of England Trends in Lending Report – April 2014
The Bank of England’s (BOE) latest Trends in Lending report shows that lending to businesses continues to decline, despite a gradual upturn in the economy.
According to the BOE, lending to large corporates was stronger than for SMEs overall which, as the Bank agrees, could well be because larger companies’ have better access to alternative sources in order to raise much needed finance to see their businesses grow.
Simon Belton, Director of Broking at BM Structured Finance, comments: “SME’s should look beyond the banks to raise finance. The key, however, for all businesses seeking funding is in choosing an adviser who understands the finance market.
“It is not a ‘once size fits all process’,” Simon continues. “SME’s must choose an adviser who can recommend the right financial products for their specific business needs.
“At BM Structured Finance we specialise in sourcing and restructuring debt finance for SME businesses. We match the most suitable products to each individual circumstance and we work together to ensure compatibility and satisfaction, thereby enhancing the business’ cash flow liquidity and facilitating maximum growth.”
As John Allan, national Chairman of the Federation of Small Businesses, says: "As the economy continues to gain momentum, ensuring small firms have access to finance is critical."
For more information about how BM Structured Finance can help you and your business, contact Simon Belton.