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Lending to small businesses falls again!

Business lending fell towards the end of last year with figures from the Bank of England showing net credit contracted by £3.7bn in November alone. Despite the Bank shifting its Funding for Lending Scheme from the mortgage market to businesses, SMEs, which are reliant on high-street banks and specialist finance and leasing businesses, continued to suffer, reporting that credit is either refused or offered at high prices by the big lenders. The report follows recent criticism from the Commons Public Accounts Committee which accused government departments for running ad hoc schemes to boost lending but failing to construct a coherent plan. The Federation of Small Businesses (FSB) has calculated that there are in the region of 900 government schemes devoted to offering financial support to small and medium-sized enterprises around the country. "One evident problem with there being so many schemes is that support may be being duplicated," said John Allan, national chairman of the FSB. "Another issue is that the enterprise support is so complex that the entrepreneur finds it difficult to access what potentially may be valuable public support."
We agree with these sentiments!