This week’s Funding for Lending figures as published by the Bank of England contains reasons for optimism according to the British Chambers of Commerce (BCC).
Statistics showed that British banks and building societies drew down £2.4bn from the Funding for Lending Scheme (FLS) in Q3 of 2015.
It also revealed that net lending to small and medium-sized enterprises (SMEs) rose by £675m in Q3 of 2015.
The news came in a week when the BCC backed the extension of the FLS for another two years – a month before it had been set to expire.
“It is encouraging that SME lending rose in the third quarter as this, alongside the extension of the Funding for Lending Scheme announced earlier this week, will help to boost business confidence,” said the BCC’s UK Economist, Suren Thiru.
“However, more needs to be done to help young, high-growth firms. Many still remain frozen out when it comes to accessing the finance they need to reach their full potential.
“This must also be supported by a British Business Bank that has the funding capability to match the ambitions of our future wealth creators.”
