Banks Becoming Happier To Offer Loans
There have been several conflicting reports recently on the state of the economy and the willingness of banks to start offering loans once again, but generally, the news is slowly starting to become more positive, as economists, banks and building societies and even consumers are starting to see the light at the end of the tunnel, however dim it may be.
To support this trend, a recent survey from the Bank of England has said that several businesses are now reporting that banks are becoming happier to offer business loans once more, as their capital margins increase and inter bank loans on the wholesale money markets are becoming cheaper again.
However, it is not all good news for businesses looking for a loan. Whilst there has been a general increase in lending to businesses, many companies are still finding it incredibly difficult to obtain the business loan they require and even if they do receive the necessary funding, in many cases, this is often at high interest rates and initial charges. There have also been reports of increased costs for existing business loans and facilities, with companies reporting significant increases in the cost of renewing existing credit facilities with their bank, or taking an extension on their existing loans.
The Bank of England have also reported that there has been an improvement in consumer confidence, with a general increase in sales across the markets, which has to be good news for businesses and the economy as a whole. It is not only business lending which has improved either. New lending on homeowner loans and mortgages has also improved in recent months, as banks and building societies are slowly starting to relax their lending criteria and introduce new loan products to the market place.
