Companies struggling to secure funding

Latest figures from the Bank of England confirm that lending to businesses in the UK has fallen by a further £4.8bn in the three months to February.

That represents a fall of 4.4% in loans to companies and small firms from the same period a year earlier.

Despite previous rhetoric it is now apparent that some banks are still trying to increase their reserves, rather than lend more money out. 

As the Banks continue to labour under the weight of their previous errors the knock on effects are percolating down through the economy.

 

With both new and additional funding hard to access – now is the time to take a long hard look at your Company’s financial situation.  

Any approach to your Bankers could be very uncomfortable in the current climate so it is necessary to demonstrate you have full control of your exposure. Make sure that the Debtors book makes for healthy reading and that inventory control and stock turn are being monitored very closely.

Ironically it is the activities of Banks themselves who precipitated the ongoing crisis but that will not prevent them from playing hard ball with anyone trying to seek support for additional funding in the current climate.