Access to Finance: Reality of business lending revealed

IT is a great time for business to borrow for long term investment despite concerns that banks are reluctant to lend, according to a leading banker.

Lee Collinson, head of region for Barclays Corporate, said approval rates for loan applications had been consistent over the last two years.

While there has been a clamour for banks to do more to help business, Mr Collinson said the reality was that many businesses are paying down debt rather than taking on new loans.

TheBusinessDesk.com has teamed up with Barclays Corporate to produce a new ‘Access to Finance’ supplement that gets behind the headline arguments about lending to business and examines the options for firms seeking finance.

The supplement is available to download from today. Click here to download it.

Mr Collinson said: “Bank rates at 0.5% are at an historic all time low. It’s a great time to borrow for long term investment.

“The overall cost of funds are so low and most are saying it is unlikely they will rise in the next year. It is a good time to borrow over a three to five year period.”

In the supplement, Mr Collinson argues that it should not be up to banks, business groups or politicians to decide the right level of lending in the economy.

“It is businesses themselves who must make the right lending decisions for their organisations,” he said.