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Funding for Lending Scheme results get mixed reaction

POSTED: 6th June 2013
IN: Business news
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This week, Bank of England data revealed that FLS lending fell by £300million in the first quarter of 2013, with lending to businesses significantly down from figures in Q4, 2012.

The statistics, which showed Aldermore in the top six lenders in the scheme, were met with a mixed reception from the business and finance community. Speaking about the figures, John Longworth, director general of the British Chambers of Commerce, said the scheme needed to do more to help aspiring SMEs, commenting that FLS needed to get "credit flowing to young and fast-growing businesses."

"Unfortunately many of these growth firms are still being left out in the cold when it comes to accessing finance, which prevents them from expanding, creating jobs and helping to drive a business-led recovery," he added.

Meanwhile, the BBC highlighted the plight of one SME, online estate agents Hatched.co.uk, a company who had been unable to secure the level of funding they required for expansion.

But, while many commentated that the scheme was not fulfilling its role to help SMEs, the increasing lending for challenger banks such as Aldermore was also noted.

Writing about the figures, BBC Business Editor Robert Peston said:

"On this evidence, simpler banks and those that made fewer egregious errors in the boom years are now providing better service to the economy, by greasing its wheels with loans."

Peston then went on to note Aldermore's contribution to the Funding for Lending Scheme, stating that The Bank 'deserved an honourable mention' for its role.

Below, we've included Twitter reactions to the Bank of England's Q1 results. Feel free to send us your own thoughts t@aldermorebank.

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