More credit available, says Bank of England report, but cost remains an issue

bankofenglandThe 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

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About Ken Hurst

Ken Hurst began his career as a journalist in London over 30 years ago, working on a range of publications before moving on to weekly newspaper production in the newly-independent Zambia of the 1970s. He returned to the UK where his work included spells on newspapers and magazines, before moving to head up Norwich Union’s corporate affairs division. In the 1990s he moved on to freelance, co-own and publish the B2B audio magazine Sound and front the BBC radio Yesterday’s Papers programme. There followed six years as Business Editor at Britain’s biggest selling regional daily newspaper, The Eastern Daily Press, where he led an award-winning team and for whom he still writes a weekly socio/political comment column. Subsequently, he was Group Editorial Director at CBM, responsible for its UK and US magazine output – including The Manufacturer magazine – research-driven industry reports and live events content. Currently he is Contributing Editor at Works Management magazine publisher Findlay Media and Chairman of the consumer publishing house TNT Multimedia Ltd. He is a Fellow of the Royal Society of Arts and of the British Association of Communicators in Business.
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