According to a survey conducted by the Federation of Small Businesses (FSB), 42% of those who applied for a loan were turned down. In addition, nearly 2/3 of those in the survey said they thought finance was unaffordable.
The British Bankers’ Association has said that lenders are continuing to provide credit to customers and that they are also helping to find alternative sources of funding if the Banks could not provide it themselves.
The FSB has stated of the 2600 business-owners surveyed, about half wanted to expand their businesses in the next 12 months, however this growth is being hindered by poor access to funding.
Lack of credit has directly contributed to a drop in business confidence, and the FSB has said it welcomes the government’s plan to set up a state-owned business bank.