Lending gap stifles UK SME's

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Lending gap stifles UK SMEs Research by Allica Bank reveals a £90bn "lending gap" in bank finance for the UK's small and medium-sized enterprises (SMEs), hindering investment and economic growth. The report highlights a "credit shortfall" in productive SME lending, which has fallen significantly below historic trends. Allica noted that lending to SMEs is £90bn lower than levels recorded between 1997 and 2004, with a substantial credit gap of up to £65bn remaining unfilled by non-bank finance. Record low levels of SMEs are seeking finance. Only 5% of bank lending is now in the form of overdrafts, down from 31% in 1998.