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02 September 2013

FSB hopes small firms will benefit following positive lending figures

Reference number: PR 2013 42

FSB News Release
FSB hopes small firms will benefit following positive lending figures
Results today show an increase in lending for the first time through the Government''s Funding for Lending Scheme (FLS), a £1.6 billion rise of net lending through the main high street banks. A fall in the price of finance is also welcomed by small businesses. The FSB hopes that in future small businesses will see more loan applications accepted. 
An FSB survey found that less than a third (29%) of respondents are aware of FLS. The FSB wants to see the communication about availability of cheaper finance stepped-up by the banks. 
The FSB is hopeful the Government''s Business Bank will oversee improvements in communication between banks and small businesses and offer guidance on focusing government-backed schemes, to the specific needs of small firms before January 2015. 
FSB research also shows alternative sources of finance are not widely known. For example, the survey also reveals that less than four in 10 aware of being able to borrow from alternative or specialist lenders such as peer-to-peer or asset finance providers. 
John Allan, National Chairman, Federation of Small Businesses, said:
"The rise in lending reported today and the fall in price of finance is good news for small firms. The next step is for banks to make this cheaper finance available to more small businesses. We have been hearing from FSB members that obtaining finance remains an issue, so hopefully today''s news will continue to shift momentum on lending in the right direction."
ENDS
Notes to editors: 
1. The FSB is the UK''s leading business organisation with around 200,000 members. It exists to protect and promote the interests of the UK''s Real-Life Entrepreneurs who run their own business. More information is available at www.fsb.org.uk and follow on twitter @fsb_hq
2. The FSB surveyed members of the ‘Voice of Small Business'' Survey Panel from 31 July to 12 August and received 2,330 responses. The study was undertaken by Research by Design on behalf of the FSB. For results go to www.fsb.org.uk/fsb-survey-panel.
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Media contacts
Liesl Smith: 020 7592 8128 / 07917 628926 liesl.smith@fsb.org.uk 
James Gribben: 020 7592 8121 / 07854 987974 james.gribben@fsb.org.uk 
Lucy Bell-Reeves: 020 7592 8116 / 07595 801773 lucy.bell-reeves@fsb.org.uk 
For regional FSB contacts please go to www.fsb.org.uk/regions