The UK’s small businesses are being starved of cash by high street lenders, the Bank of England warned yesterday.
Regional agents from the Bank who have close contact with the business community have voiced concerns that banks are increasingly reluctant to lend to small and medium-sized businesses, those which the Government needs to show growth in order to stimulate the economy.
And even when lenders are prepared to provide credit lines to such businesses, they are often requiring high levels of security to be staked, as homes and other personal assets are requested to be put at risk.
A spokeswoman for the Federation of Small Businesses (FSB) said, “We understand the need for the banking system to be cautious, but this is going too far.”
Some sectors are even being touted as no-go areas for banks by regional agents, as recession-hit companies in Construction seemingly stand little chance to accessing bank credit.
Invoice finance as funding alternative?
Has your business considered alternative funding solutions to bank credit? Want to access external cash without having to put personal assets at stake?
Invoice finance solutions such as invoice factoring and invoice discounting never require personal security and fees and charges are always made crystal clear to each and every client.
Our facilities are also highly flexible and enable you to access more cash as your business grows.
Why not give our expert team a call today to find out more.