Forum of Private Business comment on funding for lending scheme figures
Commenting on the Funding for Lending Scheme figures, released today, Phil Orford, Chief Executive of the Forum of Private Business, said,
“Last week statistics showed small businesses were still reluctant to borrow, despite better conditions and credit available. Today that is shown in the disappointing net lending figures to small businesses.
“These figures reflect the first lending figures since the Funding for Lending Scheme was recalibrated to support businesses more and, if RBS are excluded, then net lending is positive by around £1bn. However, it’s clear that the accumulative £10.3bn of net lending under the scheme is testament much more to the growing housing market than the borrowing appetite of small businesses.
“One positive to emerge from the figures is the growing lending from challenger banks. With switching made easier that it previously has been these are good sources of finance for businesses.
“We will continue to monitor the incentives in the scheme to support small businesses and given the better trading conditions in 2014, we hope to see substantially more positive figures in the next release of data.”