//
you're reading...
Bank charges and loans, Business News

Loan Demand Amongst Small Business To Fall

Loan Demand Amongst Small Business To Fall

Loan Demand Amongst Small Business To Fall

A recent survey of loan companies by the Bank of England has revealed that credit demand amongst small businesses is likely to fall.

The Bank of England’s latest survey of lenders uncovered that banks increased the amount of credit available to small companies over the fourth quarter of last year. The report suggests that this is the third consecutive quarter in which finance availability was improved.

In spite of this many UK banks are expecting credit demand amongst small businesses with a turnover of under £1 million to drop over the first quarter of 2011.

The fall in demand for finance amongst small firms is thought to be partially attributable to the growing costs of borrowing over the fourth quarter of 2010. In addition to this a number of British banks introduced much stricter lending conditions in the same period.

The increasing costs can partially be attributed to unexpectedly high levels of default amongst small businesses towards the end of 2010.

Banks reporting on credit availability and the perception amidst small business owners that credit remains very difficult to find is a discrepancy that has continued to be highlighted throughout the last 3 years.

Advertisements

Discussion

9 thoughts on “Loan Demand Amongst Small Business To Fall

  1. Weakening demand for home loans is beginning to flow through to house price flowed through into softer demand among households and we’re you can, it’s a good time to buy a first home, so long as you start a Small Business.Let me share you this http://jewelsnistico.com help me with my Small Business.

    Posted by Small Business | January 11, 2011, 10:27 am
  2. Cool be looking out for updates. cheers

    Posted by Abraham | January 12, 2011, 2:38 am
  3. like me

    Posted by jim | January 12, 2011, 8:11 am
  4. The BoE is wrong. Demand is not dropping. I lend money to small businesses day in, day out (www.bcrs.org.uk) and on the ground the real position is that SMEs are not approaching banks in the first place. This is exacerbated by the ‘informal’ conversations they have with their bank managers.

    This is not a demand problem – the issue is one of supply and the banks have all but withdrawn from the sub-£2m T/O market.

    Posted by Steve Grice | January 13, 2011, 7:10 pm
  5. The survey would have been of the main banks so they probably didn’t take other lenders into consideration.

    I agree that small businesses don’t help themselves since they’re not approaching banks in the first place, however, is been widely suggested that many firms are simply not being approved for funding.

    Posted by BusinessAdvantage | January 13, 2011, 8:31 pm

Trackbacks/Pingbacks

  1. Pingback: Start a Cleaning Business | Online Insurance Quotes Site - January 10, 2011

  2. Pingback: Bad Credit Debt Consolidation Loan: Tools To Repair Bad Credit | Get Out Of Debt Working From Home - January 10, 2011

  3. Pingback: Cheap Pressure Washers » Blog Archive » How to start a mobile car wash business? - January 11, 2011

  4. Pingback: Bad Credit Debt Consolidation Loan: Loans To Repair Bad Credit Score | Get Out Of Debt Working From Home - January 11, 2011

%d bloggers like this: