Credit conditions improve for small firms

The European Central Bank's bi-annual report has found that just under a quarter of firms said that credit restrictions had increased.

In comparison, some 42 per cent of companies had claimed this in the preceding report. 

However, there was a smaller increase in the number of firms that had found it easier to get credit.

Around 12 per cent said that conditions had eased, compared to ten per cent previously.

Demand for credit remained subdued – only a net percentage of three per cent of firms said they needed more credit.

This is a fall of 13 per cent on the last survey, backing recent reports that businesses are instead concentrating on reducing debts. 

The findings for Bank of England's 'Trends in Lending' report found that high street lenders were also reporting fewer loan applications. 

Posted by Christopher Evans

Published on: October 22, 2010

Did you like this article? Share it!