Small business bank account lending targets not being met

Business Secretary Vince Cable recently announced that small business bank account lending targets are still not being met by High Street banks in the UK.

Recently released figures concerning the number of business loans taken up quarterly indicated that financial services providers in the UK have yet to meet their lending targets.  If the trend continues, the research findings said, there would be little chance of meeting annual venture capital minimum figures.

Banks have insisted that the reason lending figures have been low for small and medium sized business enterprises was that many of these firms had no desire to take out loans in the current economic climate.  With demand for finance being low, there is not much banks can do to increase their lending until demand rises – though they do state that the credit is available for those who wish to take it.

Metro Bank chairman and co-founder Anthony Thomson has echoed these sentiments in a recent statement.  Stating that his own bank is looking to target smaller firms as its main source of customers, demand has been low for borrowing.

Many businesses had signed up to Metro Bank, remarked Mr Thompson.  However the demand for finance has been much smaller than would have been expected, which led the bank to being unable to make the same number of business loans to its customers as it would’ve liked.

While the chairman and co-founder expressed his reluctance to defend the High Street, he could only recount Metro Bank’s own experiences regarding the decreased levels of demand for credit from smaller businesses.  Mr Thomson added that business banking customers also seem to not do enough thorough research into finding the best rates on their business loans, which struck him as decidedly odd.

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