FSB welcomes boost in lending for small businesses

Friday 6 September 2013

Retail is performing well

The Federation of Small Businesses (FSB) has welcomed an increase in lending through the government's Funding for Lending Scheme.

According to the Bank of England, a £1.6 billion rise of net lending was seen in the second quarter of 2013.

Nationwide, Lloyds, Barclays and Virgin Money were the biggest net lenders between March and June this year.

John Allan, national chairman of the FSB, said the rise in lending and fall in price of finance is "good news" for small businesses.

"The next step is for banks to make this cheaper finance available to more small businesses," he stated.

"We have been hearing from FSB members that obtaining finance remains an issue, so hopefully today's news will continue to shift momentum on lending in the right direction."

Last week, the Forum of Private Business expressed concern that the banking sector could stifle private sector growth by failing to support small companies.

Phil Orford, chief executive of the organisation, said that without further support for Britain's small companies, the recovery could stall before it has been given a chance to take hold.

Find out more about how Microsoft solutions can help your business drive revenue.

Posted by Steve Williams