By Max Clarke
The Bank of England yesterday released its Quarterly Bulletin which highlighted the continued constraint on credit.
The report states:
“While there is some evidence that credit supply conditions have improved somewhat since the peak of the financial crisis, especially for large companies with access to capital markets, constrained credit supply continues to be one of the main factors holding back the economic recovery.”
James Meekings, co-founder of Funding Circle, comments on the Bank of England’s Quarterly Report:
“By continuing to restrict lending to small businesses, the banks are jeopardising the nation’s economic recovery. While they are insistent that demand for finance has diminished, our experience tells a different story. So far, Funding Circle has facilitated over £1.5 million of loans to creditworthy small businesses and almost half have used their loans to expand their business.
“It’s clear that small businesses do want to grow but they have lost faith in their banks. It’s therefore no surprise that they are looking elsewhere for cost effective finance.”