Are small businesses being strangled by the banks?
As more and more UK small businesses feel the pinch of the economic downturn there is growing concern about the role of UK banks. Despite promises to the contrary only weeks ago it seems that liquidity in the small business arena is still relatively low and causing major problems. So why is liquidity so scarce in the UK banking arena?
There is no doubt that UK banks are, and continue to be, concerned about the outlook for the UK economy in the short to medium term. As a consequence, we have seen liquidity in the small business arena fall to dangerous levels putting would be secure businesses at risk for the sake of what can in many cases be relatively small lines of credit. This comes just months after UK taxpayers injected billions upon billions of pounds into the money markets and billions upon billions of pounds into ailing UK banks. So what next?
As the UK economy readies itself for yet another turbulent period in its history we are unlikely to see a significant increase in liquidity in the small business loan arena therefore causing more problems for businesses which should have a prosperous future with a little assistance from their bank managers.
Share this..
Related stories
Bank of England cuts rates
The Bank of England's lending rate was cut by 100 basis points from three per cent to two per cent today.Deteriorating economic conditions have led the Bank to reduce the rate in each of the last three months.This is because interest rate cuts generally make loans cheaper for customers, as they are passed on by loans firms.However Michael Coogan, director general of the Council of Mortgage Lenders...
Read MorePersonal loan market continues to struggle
It has been revealed that an increasing number of payment defaults in the personal loan market are pushing personal loan rates higher and higher. The best three-year rate available at the moment on a £5,000 loan is around 9% which is almost double the rate seen prior to the credit crunch in 2007. So how will this particular market pan out in the short to medium term? In what is becoming a self...
Read MoreCo-op turns away unethical loans
The Co-operative Bank has turned away £700 million in loans for ethical reasons in the last 15 years. The bank, which markets itself as the high-street leader for ethical banking, has rejected loans from companies involved in fossil fuels, arms dealing, tobacco and those linked to human and animal rights violations, as part of its ethical and ecological policy.Ethical banking is a growing area -...
Read MoreNon-mortgage borrowing falls again
The Bank of England has revealed a massive fall in consumer borrowing, the largest since 1993 when records began. The amount of unsecured loans fell by £713 million in October compared with September which perfectly illustrates the common perception that UK consumers are looking to pay off as much of their unsecured loan debt as soon as possible. Even though there was a £134 million increase...
Read MorePersonal insolvency falls to 10 year low
29/07/2015 Personal insolvency has fallen to a 10 year low in England and Wales, according to figures from the insolvency service. The number of people being declared insolvent between April and June fell to 18,688, which is 29.3% less than a year ago, and the lowest total number since 2005. The number of firms falling into insolvency has also fallen, with 3,908 firms becoming insolvent over...
Read More