Until recently, it appeared that the efforts of the government to ensure easy access to funds, especially for small and medium businesses, had yielded good results. However, the latest data indicates that businesses’ enthusiasm to avail funds for new investments appears to be tapering off.
Business Loans in UK
The business loan scenario in the UK, especially for small and medium sized businesses has been rather dull for quite a while. The recent recession in the economy has been one of the major contributors to this situation. In case of small businesses, the banks were not as willing to lend money until very recently. The government has initiated many reforms in the area of business loans in order to ensure that unavailability of funds doesn’t stifle growth and job creation which are very crucial for the overall economic health. After these actions by the government, and also due to the recent signs of the economy turning around the corner, the disbursal of business loans has been on a growth trajectory raising hopes that the economic growth was here to stay.
The latest update on business loans
The latest numbers released by the British Bankers Association (BBA) has shocked many. According to these numbers, the business loans fell by about 940 million GBP in October after a significant rise of 2.5 billion GBP in September. There is some consensus regarding this drop being just a small correction after the unprecedented rise in numbers for September. However, some lenders have already turned cautious. Nevertheless, this doesn’t appear to be a major cause for worry as yet given the fact that the economic outlook continues to look bright and the government’s funding for lending scheme intended to assist small and medium businesses is still very much on track.