UK banks are unlikely to increase the volume of lending to businesses in the second quarter, a credit conditions survey has indicated. Despite the likelihood that demand for finance from SMEs will increase, banks are likely to remain more cautious when it comes to small and medium-sized firms. The survey also showed that the availability of credit had improved in Q1 to large firms, which were deemed less risky lending ventures than SMEs. Banks did suggest that the availability of mortgages to both households and businesses would increase in the second quarter, helped in part by the Bank of England’s Funding For Lending (FLS) scheme.
Enterprise Finance Guarantee Scheme
Another government-led initiative designed to increase the amount of external credit available to SMEs is the Enterprise Finance Guarantee (EFG) scheme. We are one of a select few independent lenders able to lend via this scheme, which we use to add extra cash to our invoice finance facilities and provide firms with a more flexible funding option.Why not click here to find out more about the EFG scheme, give us a call on 0845 602 9354 or drop us an email at info@skiptonbf.co.uk