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1 in 5 SMEs have seen restricted lending from their bank -report

Wednesday 15 January 2014 00:42 CET | News

More than one in five (21%), equivalent to around a million, of the UK’s SMEs have seen the lending terms from their bank worsen in the past five years, a recent report has revealed.

According to a report by peer-to-peer lending firm, rebuildingsociety.com, more than two fifths (9%) of those SMEs affected have had the interest rate on their overdraft facility increased while a third (7%) have had their access to additional finance restricted and a quarter (5%) have had their lending restructured.

The nationwide study by rebuildingsociety.com revealed that in the last five years, more than one in six (16%) SMEs have approached their bank to arrange or increase their company’s lending facilities. However, more than one in ten (11%) didn’t approach their bank at all because they did not believe they would succeed in getting a loan.

Also, the research revealed that currently, UK SME overdraft use stands at GBP 11.9 billion in Q3 2013, up from GBP 11.2 billion in the previous quarter.

rebuildingsociety.com, the peer-to-business lending platform, allows entrepreneurs and businesses across the UK to loan money to other SMEs.


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Keywords: SMEs, restricted lending, lending, bank lending, report, UK, lending terms
Categories: Banking & Fintech
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Countries: World
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Banking & Fintech