MORE than half of Scottish businesses which plan to seek funding for growth in the next 12 months are worried their bank will turn them down, a survey has shown. This finding, from financial services company
Asked about the latest Bank of
He said: "There are obviously still issues around demand. Some of that is about the economy. Some of it is going to be about trust issues, which still persist six years past the crash."
However, looking for encouraging signs, he added: "We are seeing members more interested in making capital investments now, which we would hope would certainly increase demand [for funding]. You can't get all of that through retained profits. You hope that is going to be met by a positive response [from banks] when they [firms] make that approach."
However, he added: "The question is, 'Where is that money going?'. Is it going to people who have been deemed a dead cert, or going to that part of the broader economy where I think our members would say there is still an issue about availability."
The survey from
He added: "Our research found that 11% of firms surveyed in
The Bank of
It followed a pound(s)2.5 billion net fall in March.
And it highlighted the fact that the pound(s)629 million drop in net lending to small and medium-sized enterprises, outside the financial sector, was greater than the average monthly fall of pound(s)400 million over the previous six months. Lending to SMEs had plunged by a net pound(s)1.1 billion in March.
He added: "For whatever reason, increased credit availability to firms is not yet translating into rising net lending. The Bank of
MORE than half of Scottish businesses which plan to seek funding for growth in the next 12 months are worried their bank will turn them down, a survey has shown.
This finding, from financial services company