Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

 
Loan claim: Think tank finds banks reluctant to lend to SMEs

Banks have proven to be unwilling to agree loans with small to medium-sized enterprises (SMEs), results from a government think tank have revealed.

The National Institute of Economic and Social Research found that banks are more reluctant to lend to SMEs than they were during the financial crisis. This goes against claims from banks that SMEs are, in fact, not willing to invest.

In the report, the institute said: "We control for firm risk and other relevant characteristics in our analysis and still find rejection rates for bank loans are generally higher in 2011-12 than 2008-9."

The government has been trying to make it easier for SMEs to agree loans, as it is hoped that they will drive an economic recovery. One of the ways it has done this is by introducing the Funding for Lending Scheme, although more help has gone to home buyers instead of SMEs.

By failing to lend to businesses, banks are making it more difficult for SMEs to gain access to finance, which has identified as one of the main barriers to growth.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.ADNFCR-2776-ID-801571362-ADNFCR



Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Town
County
Post Code 
Email 
Circumstances
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities; our registration is recorded on the website www.gov.uk/moj/cmr number 18273

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B16, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide