The Bank of England has revealed that small businesses are still struggling to access affordable loans as they continue to feel the credit squeeze.
Bank lending went down in June, but small businesses claim that one of the key reasons is the simple fact that credit rates are unaffordable to many. The sky high interest rates certainly can’t be helping which means the banks are somewhat wide of the mark to suggest the demand isn’t there.
Perhaps it’s time the ‘driving force’ of the UK economy was given more fuel to flame the recovery (and avoid a double-dip recession). If lending continues to drop, then the signs aren’t particularly hopeful for the future.
Read more about it here.