United Kingdom

Details

  • Industry: Business Services
  • Type: Press release
  • Date: 03/04/2014

Bank of England credit conditions survey is another indicator that SMEs have growth on their minds 

 

Commenting on the Bank of England’s latest credit conditions survey (BOE figs) Nick Dodd, debt advisory director at KPMG, who advises companies on their lending arrangements, commented:

"The latest findings show an increasing demand for finance from SMEs, which is a consequence of the economy improving and more businesses looking to fund growth through increased capital expenditure and working capital investment programmes.

 

"Generally speaking we are seeing more liquidity and availability of credit for good quality borrowers then we have for a while with demand from lenders driving a tightening of pricing and general relaxation of terms due to strong competition.

 

“However, this does not necessarily mean that it has become easy to access finance across the board.  We have seen businesses which are able to articulate a strong and compelling proposition proving attractive to lenders across the bank market.  Conversely, companies, particularly at the smaller end, that might lack experience in engaging with lenders may struggle.  ‎

 

"We are starting to see an increase in transactional activity which is taking up some slack in the supply of credit but not yet making a real impact on overall availability. There are SME borrowers which continue to find it hard to access funding outside of the traditional high street bank model, and  are not familiar with the emerging alternative lenders.  This could well change, however, as these alternative providers build their own brands in the market place and customers become more aware that the traditional banks are not the only funding option available to them."

 ‎

 

ENDS

Media contact

 

Emma Murray, KPMG Press office
020 7694 6506

07920 870 623
emma.murray@kpmg.co.uk

 

Notes to Editors:

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing audit, tax, and advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (‘KPMG International’), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

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