Increased lending is good news, says Defaqto

Date: 13th August 2010

The possibility of increased lending to private companies from UK banks has been welcomed by one finance specialist.

Defaqto has said discussions among banks on how to increase credit flow to UK businesses should be seen as a "good move".

David Black, banking specialist at Defaqto, said: "Anything the banks are seen to be doing to improve lending and the availability of finance to small businesses is clearly good news.

"But the proof will be in the pudding. There will be enterprises complaining they still cannot get money, and doubtless many will debate the amount they get charged, and so forth."

The comments follow the publication of a report by the Confederation of British Industry, which revealed that concerns over access to credit eased over the last three months.

According to the report, just four per cent of UK firms feel finance constraints are likely to limit their export orders.

Posted by Jacob Williams