The index, produced in conjunction with the Centre for Economics and Business Research, is designed to reveal the financial situation of small British businesses. Commenting on the release of the index, Aldermore's Deputy CEO Mark Stephens comments;
"The Aldermore SME Inflation Index is an exciting new quarterly economic survey, focusing specifically on SMEs. These companies are the lifeblood of the UK economy and therefore a vital component for a sustained economic recovery."
The main findings of the Q1 SME Inflation Index are presented in full below:
The Index's first edition, published this week, shows that, despite falling cost inflation rates for SMEs, conditions for small businesses are far from pre-recession conditions.
However, Aldermore's SME Inflation Index suggests that the government's Funding for Lending scheme may be starting to encourage major UK banks to offer credit at more affordable rates. Interest rates to SMEs continue to exceed mid 2009 levels though, demonstrating that more must be done to encourage SME lending.
Speaking about the report, Mark Stephens states:
"SMEs continue to need the support of banks to help them expand and develop their business and Aldermore is proud to be a champion of SMEs.
"These businesses come to us because they know we will take a balanced view of their business and provide them with a reliable and straightforward service and the much needed funds they need to continue growing and contributing to our economy."
Through this effort to support the needs of SMEs, Aldermore hope to see an improved economic outlook in the Q2 SME Inflation Index.
You can discuss the Index with us on Twitter at Aldermorebank.
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