approvals halved

Small Business Loans: Approvals Halved Since 2007

The number of secure loans granted to businesses was 46% lower last year than in 2007, data from Companies House has revealed. The research from Companies House found that 88,000 fewer secure business loans and mortgages were registered in 2010 than in 2007. However, British Bankers Association (BBA) spokesman, Brian Mairs, said the fall has been primarily caused by fewer small firms applying for finance, rather than banks turning down applications. “Before the recession, there was a period of easy credit. Now firms are trying to reduce their reliance on lending.” “Our own [recent] figures showed that four out of five applications are being approved. But banks are being more careful and asking more searching questions. They want to know what the firm needs the money for a... »