This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23489791
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Small business lending increase at two-year high | |
(about 3 hours later) | |
Lending to small businesses is showing signs of recovery, latest Bank of England figures have suggested. | Lending to small businesses is showing signs of recovery, latest Bank of England figures have suggested. |
Figures from the Bank show that lending to small businesses actually rose by £238m between May and June - the biggest monthly rise since the statistics were first produced in 2011. | |
The increase means that small and medium-sized businesses (SMEs) borrowed £170.4bn in June. | The increase means that small and medium-sized businesses (SMEs) borrowed £170.4bn in June. |
Lending to both small and large firms has been falling since June 2009. | |
"The rise fuels hopes that banks are now becoming more prepared to lend to small businesses," said Howard Archer, chief UK and European economist at IHS Global Insight. | "The rise fuels hopes that banks are now becoming more prepared to lend to small businesses," said Howard Archer, chief UK and European economist at IHS Global Insight. |
The Bank of England cautioned against reading too much into one month's figures, which are not seasonally-adjusted, but it told the BBC that the rise was "obviously welcome". | The Bank of England cautioned against reading too much into one month's figures, which are not seasonally-adjusted, but it told the BBC that the rise was "obviously welcome". |
Compared with a year earlier, lending to small and medium-sized businesses (SMEs) continued to decline, dropping 3.3%. | Compared with a year earlier, lending to small and medium-sized businesses (SMEs) continued to decline, dropping 3.3%. |
SMEs are businesses which have a turnover of less than £25m a year. | SMEs are businesses which have a turnover of less than £25m a year. |
Lending to larger companies continued to fall on both a monthly and an annual basis. | Lending to larger companies continued to fall on both a monthly and an annual basis. |
In total, UK businesses are borrowing 3.7% less than a year ago, and 1.3% less than a month ago. | In total, UK businesses are borrowing 3.7% less than a year ago, and 1.3% less than a month ago. |
Howard Archer said the government's Funding for Lending Scheme (FLS) may now be helping small businesses more than previously. | Howard Archer said the government's Funding for Lending Scheme (FLS) may now be helping small businesses more than previously. |
"The Funding for Lending Scheme could be starting to have more of a positive impact," he said. | "The Funding for Lending Scheme could be starting to have more of a positive impact," he said. |
The scheme was extended in April, and at the same time incentives for lending to SMEs were improved. | The scheme was extended in April, and at the same time incentives for lending to SMEs were improved. |
Under FLS, banks can borrow money cheaply from the Bank of England, providing they lend it on to businesses and individuals. | Under FLS, banks can borrow money cheaply from the Bank of England, providing they lend it on to businesses and individuals. |
Previous version
1
Next version