Bank of England figures that show that lending to British businesses fell in the second quarter, raising questions over the effectiveness of the Funding for Lending Scheme. It was introduced in July 2012 to encourage bank loans to small businesses.
Lending under the scheme dropped by £3.9bn in the three months to July, with net lending to small and medium-sized enterprises down by £435m.
Meanwhile banks and other lenders are keen to lend, suggesting that demand from borrowers may be the cause of the decline in lending. Preparing a credible and robust borrowing request and knowing the best team to approach in the banks can be a significant challenge for many SMEs. Using debt advisers helps ensure success, particularly where a step change in the business, and its funding, is planned.