According to the most recent statistics released by the Bank of England, the amount of finance given to small businesses has dropped by over twenty seven pillion pounds since the credit crunch began.
While banks are increasingly directing significant resource into trying to win the business bank accounts of small businesses, via a number of targeted marketing campaigns, it appears that they are still reluctant to lend to recently formed companies and small businesses.
James Morris, managing director of business consultancy firm ‘Morris Consultancy Ltd’, comments; “
“Despite the government’s recent attempts to support small business and enterprise in the UK, by reducing corporation tax and a number of new initiatives, they have as yet failed to address the main challenge facing the SME sector – limited access to finance. Until they do so, the country’s economic recovery is still under threat.”