11/08/2010
There is little evidence to support claims that banks are failing to lend to businesses, reports The Wall Street Journal.
In an article published today, The Wall Street Journal cites last week's news that all major high-street lenders had released data which illustrated that net lending to SMEs had actually risen over the first half of the year.
The banks say that there aren't enough credit-worthy businesses approaching them for loans, and that is the main reason why they haven't been able to lend even more. This is supported by the statistic that, whilst approvals for credit have improved by 80%, applications have actually halved over the past three years.
The Wall Street Journal also reports that senior bankers have pleaded with the Bank of England to give examples of credit-worthy companies that have been refused finance, but haven't been given any.
In fact, when the Bank of England was pushed on the matter, the only evidence they supplied was a chart by the Department for Business, Innovation and Skills which shows that lending to smaller companies is rising, and a credit conditions survey it carried out which shows that lending conditions are picking up.
This news comes as a great reassurance to any business looking to apply for sales finance, and should help instill more confidence in the economy.
Laura Nineham