Small and medium-sized enterprises (SMEs) looking for funding may be pleased to learn that lending has risen in the last few months.
Between May and June it increased by £238 million, which is the biggest monthly rise since statistics were first produced in 2011.
Howard Archer, chief UK and European economist at IHS Global Insight, said the government’s Funding for Lending scheme aimed at helping SMEs could be behind the increase, with banks doling out more than previously thought.
“The Funding for Lending Scheme could be starting to have more of a positive impact,” he said.
Under the scheme, financial institutions can borrow money cheaply from the Bank of England (BoE), providing they lend to SMEs and individuals.
Hopefully this means that banks are becoming less wary about lending cash to SMEs and it will inspire more financial firms to back entrepreneurs with strong business proposals, but the BoE has cautioned against reading too much into the figures just yet.
Posted by the Secret Businessman