General News

Banks not expecting to increase business lending

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.

Third of Brits want to start own business

More than 17 million Britons are planning to start their own business, new research has found.

Echoing similar research completed in 2009, a poll of 2,900 showed that 45% of Brits want to be paid for something they are passionate in

Reasons giving for wanting to start a new business include being your own boss (46%), new challenges (26%) and the desire to start a family business (18%).

More cash to lend through Enterprise Finance Guarantee

The value of loans offered through the government-led Enterprise Finance Guarantee (EFG) scheme has dropped in recent months, according to new research.

Despite the scheme allowing banks to lend money guaranteed by the government, a lot of cash that is readily available isn’t getting to businesses in need of funding.

Attempts by the government to increase the usage of EFG loans have been made, but there remains a belief the scheme should be focussed on businesses who haven’t got the myriad of funding options available to them that big firms often benefit from.

SME manufacturers remain enthusiastic for 2013

Manufacturers and engineering companies remain overwhelmingly positive for their prospects over the rest of 2013, a new survey has found.

More than 75% are forecasting growth for the year, according to an annual survey by the MHA group, which represents independent financial advisors. A third were even more positive and expected to see double-digit growth by the end of the calendar year.

Almost half plans to increase spend on research and development in 2013 by up to 2% of turnover, up from 37% last year.

SME confidence increased in 2013 says FSB

Small businesses are increasingly confident in the first quarter of 2013 but intentions to invest have slipped, the Federation of Small Business' (FSB) first economic report of the year has revealed.

Confidence has risen from a negative reading of -5.6 at the end of the last quarter of 2012 to +6.3, as companies see signs of recovery in the UK economy.

The small business organisation also suggested that growth figures for quarter one of 2013 would be improved on last quarter's -0.3% fall.