Lending up but euro zone detering investment says Lloyds

CORPORATE lender Lloyds Bank Wholesale Banking & Markets says it is seeing good demand for Treasury-backed schemes to help businesses invest.

The bank says it can see signs of positivity in the region’s economy – though continuing uncertainty over the euro zone is denting confidence to invest.

It still active in the regional market and its total committed lending facilities (drawn and undrawn) to North West companies rose 10% in the year to the end of June. Among the stand-out deals it supported was moneysupermarket.com’s acquisition of consumer champion Martin Lewis’ website MoneySavingExpert.com.

The unit, which backs medium-sized and large businessses, says the National Loan Guarantee Scheme – launched by the Treasury in March to reduce the cost of bank loans for eligible companies – has been well-received.

It is progressing new lending for more than 60 customers under the scheme with an aggregate total of more than £250m across the North, compared to £2.5bn nationally.

It says there has also been interest in asecond Government-led drive to boost business growth and the wider economy scheme, the £80bn Funding for Lending Scheme (FLS), introduced  last month.

Unsurprisingly, given the ongoing uncertainty, many customers are saving, not investing. At the end of June, cash deposits were up 31% on the same period last year.

Dave Allanson, area director for the bank in Manchester, east Lancashire and east Cheshire, said: “We see a real picture of strength and stability emerging across the North West’s corporate landscape, although continued uncertainty in the global economy and particularly Eurozone countries is affecting short-term confidence in many.

“For those businesses focused on growing reserves, we’re helping them develop more innovative cash management strategies to make their deposits work harder.

“For those who are ready to capitalise on new opportunities and up-scale their investment plans, we have the appetite to back them and are working closely with them to support their growth ambitions.”

New corporate customers moving to Lloyds recently include Stockport military bridge manufacturer WFEL, national fuel supplier Crown Oil and the UK’s largest trailer manufacturer, Ifor Williams.