Increasing bank lending 'could encourage market entry'

The implementation of the Enterprise Finance Guarantee initiative has helped to boost the amount of funding being lent to businesses, it has been stated.

Recent figures from the British Bankers Association (BBA) revealed that the amount of money being provided to firms increased by £271 million during March, something that may be of interest to IT companies looking to carry out market entry in the UK.

And Sophie Kummer, senior press officer at the Federation of Small Businesses, explained that the Enterprise Finance Guarantee scheme has helped improve the situation.

"There's £20 million a day going out in loans and £220 million has already gone out. It does seem that that money is dripping through and the banks are beginning to pick up again," she stated.

"The picture now seems to be changing," she added, something that firms hoping to set up offices in the UK may welcome.

According to the BBA, over 52,000 new relationships between businesses and banks were started in April.

In related news, Dennis Handel-Sam, partnership manager at Business Link, recently stated that the number of start-up businesses being established in the UK is on the rise, despite the present financial crisis.

Written by Julian Poulter and Copyright "Selling People 2009"