Managing Director of Hilton-Baird Financial Solutions, Evette Orams, comments on the latest Trends in Lending report, published by the Bank of England
The fact that lending to small businesses continues to decline is a sad testament to the failed initiatives introduced by the Government, designed to ignite the availability of credit to small businesses.
Net bank lending fell by £4 billion in February this year – the largest fall in two years. With SMEs being the lifeblood of our economy and fundamental to the nation’s recovery, it’s vital that businesses have access to the cash flow solutions they require.
Central to this is changing the mindset of businesses. For too many years the default place to go for business finance has been the bank for traditional finance, such as overdrafts and loans. It’s now time to look at more flexible and tailored facilities instead. Asset based finance is crucial to this and is poised to assist more businesses in the coming months as owners realise its potential, comprehensive benefits and the value it will add to their businesses.