Latest figures from the Bank of England have revealed that the amount of loans to SMEs decreased by £0.4 billion in September, while on a 12-month basis total business lending fell by 3.2%.
This is despite the economy growing by 1.5% in the same year to September, indicating that access to finance is still a huge concern for a lot of SMEs with bank lending not at levels it perhaps could be.
Mark Abrahams, director of short-term lender West One Loans, said that "resoundingly positive economic figures are leaving mediocre bank lending by the wayside. The economy grew 1.5% in the year to September but lending to the UK's businesses fell… clearly Britain's businesses could have generated even more growth if finance was a little more in tune with the reality in boardrooms and on the high street".
Lending in the property sector is on the up, however, but in order for the economy to reap the rewards there needs to be an equally as strong focus on funding businesses themselves.
"On the back of a rampant housing market and acres of investment opportunities for SMEs, we're seeing a tangible boom in secured commercial loans… Commercial finance is the vital link between a bubbly housing market and a solid business environment stuffed with potential," said Abrahams.
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