The latest Bank of England Credit Conditions Survey published today suggests that overall corporate credit availability “increased significantly” in the last quarter of 2013 with lenders reporting increases for small businesses and large private non-financial corporations (PNFCs).
On the demand side, lenders reported that the application level for credit was little changed for small businesses, but had increased for medium-sized companies and large PNFCs. Commenting on the latest survey, EEF chief economist Lee Hopley said steady improvements in credit conditions were continuing with the Bank’s survey bringing further signs that finance providers were making more credit available and that the appetite for risk was increasing.
“However”, she warned, “the issue of cost is still lingering for smaller businesses. With a turnaround in investment on the cards for this year we will also need to see a real pick up in net lending to businesses and fewer companies saying they have been discouraged from accessing external finance.”
Copyright Ken Hurst 2014