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East Midlands Chamber News

Chamber Welcomes Funding For Lending Extension

Bank of England (CC BY-ND 2.0)The Government and the Bank of England have confirmed an extension of the Funding for Lending scheme (FLS) and its widening to include more types of business finance.

George Cowcher, Chief Executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: “Extending FLS and widening its remit is a move that many businesses which struggle to access finance will welcome.

“FLS was supposed to increase credit supply by providing lenders with cheap funds in return for commitments to lend to businesses. However, its impact so far has been underwhelming.

“Too many local businesses still feel frozen out of access to finance. Widening the types of business finance covered by the scheme, improving the incentive to lend to SMEs and opening it up to non-bank providers rather than just relying on the high street banks are all positive steps.

“Much will depend on lenders' appetites for risk, and we will have to wait and see whether these new measures help get credit flowing to viable, growing businesses that need it and not just the ‘safe bets’.”

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