Business Loan News Articles

A Conservative MP has argued that there isn't enough choice among banks for small businesses looking for loans. Sam Gyimah is calling for ideas to spark innovation in the lending market.

According to Gyimah, businesses are at a major disadvantage compared to consumers when it comes to getting a loan. He notes that banks often refuse to lend to a small business that have their main accounts with another bank. While that makes sense for the bank, it leaves the business much less able to shop around for loans, look for a better deal, or find a lender if its own bank turns it down.

That's a particular problem given banks are getting tougher with loans: a recent study found that the majority (60%) of businesses looking for finance this year are not confident about Read Full Story

The Bank of England has revealed that lending to small businesses has dropped for five straight months. It's led to claims that the major High Street banks could find themselves losing out to new lenders in the market.

The Federation of Small Business says there is demand for £55 billion a year from small firms, the vast majority of it being used simply to get through the overall business slowdown. That's led to an influx of new lenders to challenge the big names.

As well as newly formed banks specializing in business loans, there are a growing number of investment companies such as hedge funds offering cash to small firms.

The market gap is partly down to the legacy of the credit crunch banking crisis. Major banks must stick to tough rules about Read Full Story