Business Loan Requests Rising
Tuesday August 19th 2008
Company loan applications have risen for the first time over 18 months with the strongest increase in demand coming from established businesses borrowing more than half a million pounds, new research from Barclays Commercial Bank suggests.
It polled 600 companies with sales of between £1m and £100m and found that 17pc had increased their loan borrowing compared with last year and that 6pc had done so significantly.
By comparing the numbers borrowing more compared with those borrowing less, Barclays said that the balance had risen from minus one in December - indicating a decline in overall borrowing - to plus two in June, indicating a rise.
Dr Richard Roberts, the bank's small and medium-sized enterprise (SME) analysis director, said that the increase was down to a jump in demand for loans of more than £500,000 borrowed on terms of between five and ten years.
He added that following a 20pc to 25pc fall in the total number of new loan applications from the end of 2006, they levelled off in April and May and were now edging up.