Banks in action on lending
BANKS in the North-east were issuing guidelines today aimed at giving businesses a better chance of securing credit.
It follows a deal struck with the advisory group Business Link and comes as lending figures issued by the banks for the last quarter reveal new lending levels remained broadly stagnant.
Working with representatives from the major regional banks and development agency ONE North East, Business Link developed guidelines that provide clear criteria about what banks are looking for when making a decision on whether to offer financial support.
The guidelines were being made available to businesses for the first time today at the Keep Your Business Fighting Fit Conference at the Sage Gateshead, and then distributed at a series of breakfast seminars which are due to take place in October.
The move comes amid growing concerns among businesses over the difficulty of accessing affordable finance.
New figures from the British Bankers’ Association (BBA) showed that new lending to small firms fell from £867m in June to £796m in July. Meanwhile a recent survey by the Federation of Small Businesses (FSB) said one quarter of small firms are still struggling to access affordable finance.
Poor credit conditions are among several factors that could hinder Britain’s climb out of recession.
Today the Confederation of British Industry (CBI) warned the pace of the UK’s economic recovery will slow early next year as demand slackens in the wake of a planned VAT hike.
Next year could start with quarterly growth of just 0.1% after expected growth of 0.4% in the final three months of 2009, the organisation said, with unemployment peaking at around three million in the second quarter of 2010.
