Small businesses bear the brunt of slowing bank lending

Extract . . .

“Business lending by banks dropped £3.5bn in June - and SMEs suffered the most. Surprised?

The Bank of England said today that business lending fell by £3.5bn in June. And guess who bore the brunt of that? That’s right, small businesses – who, unlike their larger brethren, don’t really have other sources of funding to fall back on. The banks argue that there simply isn’t much demand from this end of the market – and while there may be some truth in that, the sky-high interest rates currently on offer aren’t exactly helping. The Forum of Private Business also reckons that SMEs are not getting a fair deal on property valuations when they apply for asset-backed loans. Not particularly encouraging, is it?"

Link
http://www.managementtoday.co.uk/channel/Finance/news/1023278/small-businesses-bear-brunt-slowing-bank-lending/