A report has just been released from the Bank of England indicates that lending to small businesses is on the decline.
For the last seventeen months the rate of lending has been consistently dropping, with a critical eye on the government's
promise to lend one hundred and nintey million pounds to small companies this year. However figures from the first two
months of this year indicated that only two billion pounds has been loaned out. The report demonstrates that many
small business owners are having to find more expensive ways to replace their overdraft options and many have
expressed frustration in dealing with their local banks. The main concern is that many small businesses are what is driving job creation, the economy is still showing signs
of struggle, making it harder for small businesses to expand will mean less new jobs, less money entering the
economy through expenditure, the question becomes, what is on the minds of the banks lending strategists?
For the last seventeen months the rate of lending has been consistently dropping, with a critical eye on the government's
promise to lend one hundred and nintey million pounds to small companies this year. However figures from the first two
months of this year indicated that only two billion pounds has been loaned out. The report demonstrates that many
small business owners are having to find more expensive ways to replace their overdraft options and many have
expressed frustration in dealing with their local banks. The main concern is that many small businesses are what is driving job creation, the economy is still showing signs
of struggle, making it harder for small businesses to expand will mean less new jobs, less money entering the
economy through expenditure, the question becomes, what is on the minds of the banks lending strategists?
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