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Banks lending to "viable" business properties
Business properties that are deemed "viable" by the banks are being given access to lending, the British Bankers' Association (BBA) has suggested.
The group has produced a factsheet that aims to help commercial property owners gain a better understanding of how banks assess the price of loans to small businesses.
It addresses issues such as the cost of funds - the price banks pay to borrow money to lend on to companies - and the proportionately more expensive costs of dealing with small businesses.
BBA chief executive Angela Knight said: "Banks are lending to viable businesses, but the easy terms were in the days before the credit crunch. Now, as everyone knows, things are very different."
She added that it is vital to the recovery of the UK economy that borrowers and lenders discuss the realities of providing loans in the current economy.
The BBA states it is the leading association for the UK banking and financial services sector.
Posted by Darren Purse
The group has produced a factsheet that aims to help commercial property owners gain a better understanding of how banks assess the price of loans to small businesses.
It addresses issues such as the cost of funds - the price banks pay to borrow money to lend on to companies - and the proportionately more expensive costs of dealing with small businesses.
BBA chief executive Angela Knight said: "Banks are lending to viable businesses, but the easy terms were in the days before the credit crunch. Now, as everyone knows, things are very different."
She added that it is vital to the recovery of the UK economy that borrowers and lenders discuss the realities of providing loans in the current economy.
The BBA states it is the leading association for the UK banking and financial services sector.
Posted by Darren Purse
Tue, 13th Jul 2010