Small business loans and applications are at an all time low according to findings by the Federation of Small Businesses.
In the first quarter of 2022 just 43 percent of applications where approved. The FSB’s findings show that successful applications have dropped to the lowest level on record. Those that where successful a large proportion (42%) are planning to use the credit to manage cashflow.
Only 9 per cent of small businesses applied for loans in the first quarter of 2022, this is the lowest rate on record since SBI records began. Whilst lending to large firms has raised significantly in 2022.
“Lenders pulling up the drawbridge for small firms will threaten our already faltering economic recovery. Businesses are born every day across the UK – many need funding to get off the ground, ensuring they reach a stage where they’re profitable and creating opportunities. Culture change is what’s needed here – lenders taking an objective approach to small business finance and big corporates putting best supply chain practice at the heart of environmental, social and governance programmes.”
FSB national chair Martin McTague
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