The Forum of Private Business responds to the latest Funding for Lending figures
The Forum of Private Business has responded to the latest Funding for Lending figures released by the Bank of England.
Phil Orford MBE, Chief Executive of the Forum of Private Business, said:
“Today’s figures are disappointing with net lending to businesses and households down by £2.3 billion since June 2012. Positive signs of economic recovery suggest that business confidence is up and last week’s BDRC Finance Monitor for SME lending suggested that 51% of businesses surveyed were looking to grow in the next 12 months. The appetite for growth is there, but today’s figures suggest when it comes to looking for external finance businesses are simply not turning to the banks, looking to friends and family or seeking alternatives such as asset based finance.
“Despite awareness of schemes such as Funding for Lending, and a desire to borrow, businesses are under the impression that the banks are still not willing to lend, and this perception gap risks disabling the access to finance that is vital to support growth and getting Britain trading at pre-2008 levels.
“My message to the banks is we can’t afford for progress to wither. Banks must be proactive in providing the liquidity the economy needs and promoting awareness of – and access to – the financial mechanisms in place to support lending."