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Will fall in lending drive need for facilities management cost reduction?

September 20th 17:19 Cost Management 

Facilities management cost reduction could become increasingly important as lending to businesses continues to fall.

According to the latest Bank of England Trends in Lending report, the net monthly flow of lending to businesses contracted by £2.5 billion in July, compared to a fall of £3.2 billion in the month before.

There was a year-on-year decrease in lending of 5.7 per cent during the month, an improvement on the 7.9 per cent reported in June.

Despite it being the smallest drop in lending in almost a year, it is the fifth month in a row that the figure has fallen, with smaller businesses being particularly badly affected.

"While credit conditions were easing for larger businesses, they remained tight for smaller firms. Most major UK lenders reported that demand for credit remained subdued," the report said.

Data in the report comes from the UK's biggest lenders - Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland - which make up around 65 per cent of business lending.ADNFCR-2717-ID-800072994-ADNFCR


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