Business Loans Becoming Easier To Obtain
We have reported on several occasions, over the course of the past few weeks, on the problems which are being faced by many small and medium sized businesses in the UK when it comes to obtaining additional funding through a new business loan from their bank.
Since the onset of the credit crunch, almost two years ago now, banks and other loan companies have been extremely reluctant to offer loans of any kind and have come under increasing pressure from the Government for their failure to provide suitable, affordable loans and finance to help support small and medium sized businesses during the economic slow down.
But according to a new survey, companies are now beginning to find it slightly easier to obtain the funding they require through a business loan. The Confederation of British Industry (CBI) Access to Finance survey has shown that loans to businesses are starting to see a slight increase in acceptance rates, as banks and other lenders are slowly beginning to relax their lending criteria, as well as being able to gain access to new wholesale funding.
As a result of this, the Access to Finance survey, which was brought into existence at the start of this year, has shown a positive movement in business loan acceptance rates for the first time since the current economic crisis took hold.
Several high street banks have received financial bail out packages from the Government in the form of Treasury loans and part of the conditions of these loans was to provide affordable and accessible finance for small and medium sized businesses. These banks have recently been placed under more pressure from the Government to deliver their promises to small businesses and perhaps, finally they are starting to wake up to their responsibilities.
