Breaking news from the BBC Paper tax returns to be replaced by digital by 2020

Read more...

Chancellor George Osborne delivers his last budget before the General Election

Read more...

Tax planning for 5 April 2015

Read more...

HMRC gets £342m in Swiss-UK tax deal

Read more...

Tax review to be undertaken. 20/05/2011

Read more...

PAC call for Google to be investigated

Read more...

Contact Us

News Items

Tax Tips

Brilliant with numbers
Great with people
Clear and precise with advice
Timely and cost effective
In touch with issues that face our clients
Mindful of our client’s long term strategic goals


Helping Your Business is Our Business
 


Call us now on 023 8083 6900 ABDS Home

News - 8 May 2014

Lending to UK Businesses Slows

According to figures released by The Bank of England (BoE), lending to UK businesses fell by £500m in the three months to February – but this is not bad news.

The Trends on Lending report, noted that a slowing down in the fall of lending, with net lending to small and mid-sized businesses – gross lending less repayments – close to zero in Q4 2013, having been negative for the same period a year before. And the fall was far less than the £3.3bn reported in the three months to November.

Stuart Coleman, Manager of the Tax Department of ABDS comments:
“The report also highlighted the rise of alternative sources of finance with agents reporting “growing use” of peer to peer lending, crowdfunding and venture capital funds.”

The Bank has been working towards encouraging lending to businesses, with the Funding for Lending Scheme launched in 2012 to allow lenders to borrow at low rates if they provide loans to companies and by increasing available credit to businesses in the first three months of the year. Applications, however, remain low. Around 80% of small and mid-sized businesses did not seek finance at all in the year to Q4 2013, the SME Finance Monitor found.
Nevertheless, economists believe the lack of growth was a result of businesses seeking cheaper sources of funding, which can be viewed as a sign that the financial market is strengthening.

Furthermore the Bank’s report and the Banking Trade Association’s chief economist, Richard Woolhouse, noted that repayments from businesses had a part to play in the net drop in lending.

"Businesses are building up record cash reserves and paying off more of their debt, leading to an overall decline in net lending… seven out of 10 applications for business finance are approved so there's rarely been a better time to approach your bank."

If you need any help and advice on Management Accounts, Budgets and Cash Flow Forecasts, contact Lavinia Newman, Stuart Coleman or Tonmoy Kumar NOW to discuss how ABDS can help in all your financial planning.

ABDS Chartered Certified Accountants of Southampton.
Tel: 023 8083 6900  E-mail: abds@netaccountants.net

Brilliant with numbers   
Great with people  
Clear and precise with advice
Timely and cost effective 
In touch with issues that face our clients
Mindful of our client’s long term strategic goals

Helping Your Business is Our Business

« Back to News