» Read the full story

UK businesses are still finding it hard to get hold of credit as the amount lent to small and medium sized businesses fell by almost 50 per cent on 2008's lending statistics.

According to the Bank of England's figures on lending in May, lending to UK business fell by 4.2 per cent, a net reduction of £3.4bn. This, on top of April’s net reduction of £6bn, means net lending is still almost a half down on May 2008’s lending numbers of +£2.4bn.

This is tough for business as without credit in the form of loans, mortgages and overdrafts, they simply cannot function. The Federation of Small Business says these figures are "disappointing" and warned that without credit business in the UK will fail.

A spokesperson says: “Banks need to lend to help businesses survive, but we are hearing that some members are finding it easier to get hold of money. Before March they all seemed to be hitting brick walls, but over the last few months money seems to be trickling down. From anecdotal evidence we may see an improvement in figures in the coming months.”

If you are finding it hard to get some credit for your business , talk to a financial adviser. They are the single best place for help when it comes to getting hold of credit for your business. They may not be able to get you everything, but they will certainly be able to improve your chances using their expertise and knowledge of the banks.

SOURCE: FSB, BoE, 21/07/09

Keep up with the latest news and comments on Self Employed Mortgages at the Self Cert Mortgage Blog