Clearview Midlands March 2014 - Issue 148 | Page 80

businessNEWS

Biggest fall in business
lending in six months

The Bank of England report says net
lending to businesses fell by £3.7bn in
November, despite attempts to rebalance
loans away from mortgages.
This was the biggest drop since May, coming
as a blow to Mark Carney’s attempt to boost
business lending.
The Bank of England Governor has
attempted to cool down house price inflation
and encourage business loans, using measures
such as cancelling the Funding for Lending

Scheme for mortgages from the start of
2014.
The previous lending report - released
in October - indicated that the decline in
business lending had started to tail off, falling
at a relatively low £2.3bn in the three months
to the end of August.
However, net lending to businesses was
down £4.3bn in the following quarter - the
three months to the end of November. In
the 11 months from the start of 2013, net
business lending was down 3.1pc - the same
fall as in the same period in 2012.
This comes despite increasing demand for
loans, according to the BoE’s latest credit
conditions research. Low levels of business
lending and investment have led to fears that
Britain’s economic recovery is an unstable one
built on higher consumer spending.
“The annual rate of growth in the stock of
secured lending to individuals in the year to
November remained weak,” the report said.
Although alternative methods of financing

are growing, six institutions - Santander,
Barclays, HSBC, Lloyds, Nationwide and
Royal Bank of Scotland - account for 70pc of
all business lending, according to the Bank of
England.
Howard Archer, chief UK and European
economist at IHS Global Insight, said an
improvement in business lending trends seems
likely.
“With the UK sustaining a decent level
of economic activity and prospects looking
relatively bright, it seems highly likely that
business demand for credit will pick up
appreciably over the coming months,” he
said.
“As demand for credit does pick up, it
is vitally important for healthy and more
balanced UK growth that all companies
who are in decent shape and who do want
to borrow – whether it be lift investment,
explore new markets or generally support
their operations – can do so, and at a nonpunishing interest rate.”

Smarta & Santander
search for UK’s best fastgrowth businesses...
Will yours be one?

Entrepreneur judges are poised to begin
the search for the Santander Breakthrough
50 in partnership with Smarta - an awards
scheme recognising some of the UK’s
50 fastest-growing and most ambitious
businesses.
The scheme has been created to recognise
businesses that have grabbed a significant
market share, have growing revenues and
a clear vision to develop even more in the
future.
Winning companies will become a member
of the Breakthrough 50 alumni and attend
the awards ceremony with the SME advisory
board, fellow Breakthrough 50 winners and
other fast growing businesses.
The top five will also be invited to pitch to
the judges with one Overall Winner receiving
the opportunity to take a place on a once in
a lifetime trade mission to Brazil, New York

80

MAR 2014

‘Opportunity to take
a place on a once in a
lifetime trade mission to
Brazil, New York or Mexico’
or Mexico and receive mentoring from one of
the SME Advisory Board, members of which
include Ana Botín and Sir Terry Leahy.
Ahead of the launch of the first ever
Santander Breakthrough 50 Awards, Smarta’s
Wasmund (pictured) said: “Growing
businesses set the precedent for others to
aspire to. We want to recognise the fastest
growing businesses that are punching above
their weight, making significant impacts on
established industries and raising the bar for
all other small and medium-sized enterprises
in the UK.

“Apply now and let us tell the
world how great you are!”

Ana Botín, CEO of Santander UK, said:
“SMEs play a vital role in driving new job
creation and economic growth. Furthermore,
it is just a small section of these businesses,
just 10 percent, which create the majority of
these jobs and growth. At Santander, we are
committed to supporting these businesses,
as we believe they are the ones that have the
potential to become the global leaders of the
future.”
Businesses have until April 30th to apply at
www.smarta.com/Breakthrough50. Winners
will be announced on May 15th.

To read more, visit www.clearview-uk.com