Banks still not lending to SMEs: ISME
IT is as hard as it has ever been for a small business to get access to finance from the banks, a new report claims.
The latest quarterly bank survey from lobby group ISME show 65pc of small and medium sized enterprises believe it is getting harder to access credit.
More than half of companies who applied for funding in the last three months were refused credit by their banks, little changed on previous quarters, while an overwhelming 95pc of those surveyed believed the government was having little or no effect on easing credit conditions for SMEs.
ISME chief executive Mark Fielding said the survey “demonstrates that the banking system for SMEs is not working”.
“While it may suit the government to believe the bankers’ fiction [that they are lending], the truth of the matter is that banks are deleveraging through curtailing SME lending, thereby sabotaging the economic recovery through pure self-interest,” he added.