Bank lending to small-to-medium enterprises (SMEs) decreased in the three months leading up to May by approximately £3 billion, the Bank of England’s Trends in Lending report has revealed.
The annual rate of growth in cash lending to UK businesses consequently remained negative as SMEs still struggle to source funding to finance their businesses despite various bank initiatives.
Smaller businesses were reporting difficulties in accessing loans, with finance seen to be more available to those with strong balance sheets and long credit histories.
John Cridland, CBI Director-General, said: “With lending levels falling and prices rising, we need immediate action to boost lending in the economy to help growth.”
Business finance solutions
Alternative funding solutions, as provided by Skipton Business Finance, can often be accessed by SMEs and small businesses that may not have the required strength in their balance sheet for bank credit.
Check out our website for more information on how invoice finance facilities such as invoice factoring and invoice discounting could unlock thousands of pounds worth of cash you have tied up in your invoices.