Friday 1 November 2013
Small and medium-sized businesses (SMBs) are still struggling to access growth capital, it has been claimed.
Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce (BCC), was commenting on the latest lending data Bank of England.
SMB lending - loans and overdrafts - fell by £383 million in September 2013, while lending to large businesses rose by £1.1 billion.
Total business lending rose by £720 million over the course of the month.
Dr Marshall said it is positive news that overall lending increased, as this has an impact on business confidence.
"Yet these new figures show that while large firms have little difficulty tapping debt markets, SMBs - and in particular young, fast-growing firms - continue to struggle to access growth capital," he stated.
According to Dr Marshall, both policy-makers and financial institutions need to do more to help fast-growing SMBs access finance.
"The British Business Bank has a huge role to play here, and should be enhanced with additional capital to help plug the gap," he stated.
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Posted by Dan Smith