Businesses have improved the way they are run, says expert

Date: 9th November 2011

Demand for finance from the UK's small businesses is lower than expected as the fiscal crisis has forced them to improve the way they are run.

That is the suggestion of John Jenkins, chief executive of GE Capital UK, who claims that while banks have money available and are willing to lend it to small businesses, there is a lack of demand.

"What we are seeing in our portfolio is businesses running themselves better, paying down debt and being much more considerate in how they invest and how they use their capital," he told BBC Radio 5's Talking Business podcast.

"Businesses need to have the resources available to grow and we're seeing some very good growth stories within them so I'm not sure there is a link between lack of capital and lack of growth – we are seeing growth."

The comments however, are in direct contrast with those of Shawbrook Bank, which has pledged to make £250 million available in small business loans next year.

Posted by Thomas Fletcher