Demand for Loans at BEF up 22% on Target
Further proof of the Gap in the Provision of Finance
We are now 6 months into our financial year and 6 months into our campaign to ‘lend a million’ for small businesses. Just to prove the demand for loans is as acute as ever we can share that we are now 22% up on where we expected to be and there is no sign of it slowing down.
A recent report by the bank of England showed that business lending was down 2.2% on last year, and last year was a bad year anyway. Despite the Government’s stated intentions it is clear that it is having no effect on the bank’s policy. If the banks are reducing their supply of finance to business what hope is there for a business led recovery.
The position of the banks is disappointing especially when people seem to have the appetite for enterprise. Unfortunately organisations like us (Community Development Finance Institutions) have limited resources and would be easily swamped. There needs to be a shift in Government policy to support alternative business finance providers like CDFI’s, who provide business support along with loans. They also need look to provide mechanisms for meeting the demand for enterprise through grass roots organisations like CDFI’s and Enterprise Agencies especially since Business Links are unlikely to be around for much longer.
