Businesses finding it easier to obtain credit, says CBI
A recent report by UK business lobby organisation CBI has found that, for the first time this year, businesses are finding it easier to obtain loans.
The investigation suggests that larger businesses have seen a significant improvement, which is expected to continue over the next three months. 27% of firms surveyed said that availability had improved, while 10% said it had worsened – the resulting difference of approximately 18% is an improvement over May’s figure of -20%, which is said to be the first step up in credit supply since the CBI’s survey began in January.
However, the outlook is not so bright for small and medium sized businesses, which saw a moderate decline in the availability of lending, and who also expect the situation to become tougher over the coming months.
Richard Lambert, CBI Director-General, said:
“Smaller and medium sized businesses are still facing challenging credit conditions and have fewer funding options open to them than big companies. We hope that over time their credit supply will improve.”
In response to the optimistic lending attitude for larger firms, he also added: “Credit availability had been getting more difficult for many months, so today’s results are positive news. The improvement in access to new credit will help many businesses struggling with the recession, and it is encouraging that its supply is expected to improve in the months ahead.”