By Daniel Hunter
Details of a scheme aimed at boosting high street bank lending will be unveiled later today (Friday) by the Bank of England, following its governor’s, Sir Mervyn King’s, announcement last month in his Mansion House speech of 'funding for lending'.
The central bank could make £80bn available if High Street banks increase lending by 5%.
Dan Wager, CEO of mPowa, who has been campaigning for better support for SMEs which make up over 99% of the private sector, welcomes today’s move.
“This initiative will help small and medium-sized companies up and down the country to invest in their businesses and improve cashflow," he said.
“Bad debt and late payments are the main reasons why companies go to the wall. Even fast-growing companies with healthy order books struggle to secure a healthy cash flow.
"These companies employ over fifty per cent of the British workforce. If we don’t support them properly we will suffer as a nation. Ideally we need to speed up payments to small companies who wait on average 29.6 days longer than their agreed payment terms to get paid.”
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