SMEs hit by lending slump

Loans to small businesses have dropped by £28 billion since the fall of Lehman Brothers two years ago.


Loans to small businesses have dropped by £28 billion since the fall of Lehman Brothers two years ago.

Loans to small businesses have dropped by £28 billion since the collapse of Lehman Brothers two years ago.

According to statistics from the Bank of England, the amount of loans outstanding to businesses is now £471 billion, down from a peak of £505 billion in September 2008.

New bank Aldermore claims that the loan slump hits SMEs the hardest due to smaller businesses not having as many options to find alternative funding as larger ones.

Phillip Monk, chief executive of Aldermore, says: ‘There are still many healthy, promising businesses out there that are being refused funding from high street banks. Two years on from the Lehman collapse we must ensure this issue does not get kicked into the long grass.’

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