Some good news! After years of decline, there has at last been an increase in bank lending to small businesses.
According to a Bank of England report, net lending from banks rose by £635m in the first quarter of 2015.
Funding for Lending Scheme
The government backed Funding for Lending Scheme has helped. It makes it cheaper for banks to borrow from The Bank of England so they can lend to householders and more recently to businesses.
While not all banks lend, and not all businesses borrow, this is promising as it shows evidence of a crucial rebound in business lending as economists hope for improvements in investment and productivity.
Improvement in Credit Conditions
Added to this, credit conditions for small businesses are showing an upward trend, with debts being paid off and investment taking place in equipment and training which should lead to increased productivity and higher wages.
A Business Plan will help!
At last, it looks as if the time is right for small businesses. However, anyone interested in raising finance needs to be aware of the potential hurdles and pitfalls, which a focused business plan and solid forecast can help address, so call me for a chat today.