Lending to SMEs (small-and-medium enterprises) in the UK that have taken advantage of the Bank of England’s Funding for Lending Scheme (FLS) has risen in the period from 1st April 2015 to 30th June 2015. In this period, lending increased by £490 million. This follows a net rise in lending of £648 million in Q1 of 2015 to this important sector.
The Funding for Lending Scheme was launched back in July 2012 jointly by HM Treasury and the Bank of England and appears to be a success. It provided an incentive to banks and building societies in the UK to financially support SMEs in so much as for every £1 banks advanced to SMEs the Bank of England will lend the banks £5. To date, a total of £61.4 billion has been provided by banks and building societies.
Lloyds Banking Group was the biggest net lender at £527 million in quarter 2 of 2015. Nationwide Building Society saw the biggest decline in lending to this sector with a drop of £279 million in the same period.
Could one of the reasons for greater lending being made available in the UK be due to a relaxation in credit conditions? There would also appear to be increased confidence in the business community about the economy here in the UK. Let us hope that this confidence continues into the future possibly resulting in a number of these SMEs growing to become large corporations.
Of course, there are numerous sources of lending to the small and medium sized business sector here in the UK so it is certainly worth shopping around to try to obtain the most competitive lending package to meet your requirements. In this respect, why not take advantage of the service provided by Connect Commercial Finance as we provide you with access to a specialist advisor who can help source the most suitable business lending product to meet your requirements.