Small and medium enterprises (SMEs) are still finding it tough when it comes to obtaining finance, according to a new report.
The Bank of England (BoE) has said that, although the amount of loans being offered to businesses was at its highest since the summer of 2012 when the Funding for Lending (FLS) scheme began, it still isn’t hitting the target that it should be.
FLS was introduced with idea of providing lenders with the incentive of cheap finance in exchange for loosening their criteria when it came to allowing SMEs and households to borrow money.
In the third quarter of the year, around £5.5 billion had been advanced by banks – quite a considerable amount given that the second quarter had seen £1.6 billion offered to SMEs.
Recently, the powers that be have decided to scrap the household element of FLS altogether in the hope of refocusing finance towards business.
Have you struggled to get a loan? Do you think FLS has made a difference?
Posted by the Secret Businessman