A recently conducted survey by manufacturers’ organisation EEF has that revealed that even the best business bank accounts in the UK are still finding it a struggle to secure finance in today’s economic climate.
According to EEF survey’s findings, the expense of securing a business loan or other related credit is higher than it was a mere two months prior to the present date.
The survey’s findings come hot on the heels of recent demands from both the public sector and the business industry calling for banking institutions to open up their coffers to provide more working capital to businesses.
EEF chief economist Lee Hopley released a comment in conjunction with his organisation’s findings, saying that both the financial market crises and the recession have played roles in worsening the costs of securing finance in addition to the conditions lending institutions are attaching to that access, which has resulted with a small number of companies actually encountering an improved lending landscape despite the economy’s slow but steady improvement.
The process, Mr Hopley added, was unlikely from the beginning to be either easy or swift, but the EEF has expressed concern in regards to how the financial supply is being outstripped by the business sector’s demand for credit, as evidenced by the rising cost of new borrowing.
The EEF surveyed in excess of 300 different companies, finding that from July to September the cost of a business loan in regards to lending institutions has been quite nearly static.
During that same period of time, 31 per cent of all respondent companies reported that the cost of credit increased overall, which was a slight reduction from the previous 34 per cent figure.
Additionally the report remarked that new borrowing related costs had risen for 37 per cent of all respondents, which had increased from its 32 per cent figure previously recorded.