Lenders "willing and able" to provide business loans ? commercial mortgages

25 February 2009

An industry insider has claimed that UK banks are "willing and able" to supply finance to smaller firms, such as loans or commercial mortgages.

Lenders are "working closely" with customers to assist them through the current slowdown in the economy, according to Paul Ross, the director of the British Bankers' Association (BBA).

He was commenting on the announcement from business secretary Peter Mandelson that the enterprise finance guarantee scheme unveiled by the government has provided help to thousands of companies since its launch a few weeks ago.

This programme has enabled banks to lend to "viable businesses which might otherwise struggle to get credit", Mr Ross stated.

And the BBA is committed to working with ministers on order to draw up "innovative" ways to support the economy, he added.

The help offered by the government's scheme has also been noted by the Federation of Small Businesses, but the body revealed that it has concerns that the initiative is not being promoted enough by some lenders.