At last it would seem that our battered and bruised British economy is on the up, following the Bank of England’s statement that the demand for business loans in UK has increased.
After years of loan rejections and application refusals, SMEs can finally breathe a sign of relief as they discover that now they have access to alternative funding to fulfil their dreams of being their own boss. Whether they require the finance for marketing, investing in a website, new staff, opening a location or buying a company vehicle, having access to valuable extra finance allows business owners to help their company stabilize, grow and succeed. Indeed, many businesses use finance to help plug their debt gaps and sustain extra working capital to help the financial month go by a little easier
And it seems the attitude to borrowing money is changing, too. Whereas it once seemed that borrowing was not something a business should do, due to lengthy applications or in-depth credit checks, now businesses are feeling a more positive attitude towards getting a financial boost. In a regular audit of lenders’ current financial status, the results reveal promising figures as business owners find the confidence to step out and gain funding to invest in their new business.
The Bank of England went on to say that the reason for the increase in availability of funding applications loan is that fierce competition between lenders since the recession has resulted in lower hurdles when applying for a loan, hence making more credit available to businesses of any size and shape.
The timing of this new increased demand for finance couldn’t have been better, as our economy is massively reliant on consumer spending. With hundreds of new business owners feeling more confident in the market, they are now choosing to bite the bullet and invest in their dreams, and as a result the British economy should receive a very welcome boost.
Lenders are in an incredibly privileged position now, wielding the potential power to make or break and economy according to their group and individual practices. Whether you are a small business just starting out or an established successful business that needs capital to take your organisation to the next level, alternate methods of funding are very often your only hope. If the UK economy is to continue to expand at the rate of 3% of the previous year, then the ability for businesses to safely borrow and invest money into their venture is key.