Business Lending Falls In January
According to the statistical release published by the Bank of England on 1st March 2018 entitled Money and Credit: January 2018 there was a drop in the amount outstanding on loans to businesses here in the UK in the month of January 2018. It is perhaps a little concerning as it is the biggest fall seen for quite some time.
Loans to large businesses dropped by £0.9 billion in January 2018 with large businesses being classed as having an annual debit account turnover of at least £25 million passing through the main business account. When looking at this sector it is loans to public administration and defence that saw the biggest fall with a reduction of £1.5 billion. The wholesale and retail trade saw a drop of £0.3 billion and mining and quarrying also saw a reduction of £0.3 billion. Real estate, professional services and support activities actually saw a rise of £0.4 billion in the amount outstanding on loans.
It is also interesting to see that the amount outstanding for loans to SMEs with such businesses being classed as having an annual debit account turnover of below £25 million passing through the main business account fell by £0.7 billion in January 2018. The sector that saw the biggest drop was in manufacturing which saw a reduction of £0.2 billion.
It would be interesting to establish why there has been such a fall in the loan amounts outstanding in January 2018. Is there a lowering of business confidence here in the UK?
It will be interesting to monitor these business lending figures in the coming months to see if there is an improvement. If you are a large or SME business looking for business lending then why not get in touch with us and we can arrange for a specialist business mortgage broker who has an extensive panel of lenders at his or her disposal to contact you to discuss your requirements.