The government’s Funding for Lending Scheme (FLS) has increased its lending for the first time, with a £1.6 billion rise in net lending to high street banks.
Despite the fact £17.6 billion has been taken out of the scheme by banks, many small businesses are unaware of how the lending scheme could benefit them.
A study from the Federation of Small Businesses (FSB) found that less than a third (29%) of small business owners were aware of the FLS.
Less than four in ten respondents are aware they could borrow from alternative or specialist lenders such as peer-to-peer or asset finance providers.
John Allan, National Chairman for the Federation of Small businesses, said “Many small businesses have been affected by the lack of access to financial support during the financial recovery and have relied on non-bank lenders to keep them afloat. We hope the small increase in lending from Funding for Lending (FLS) continues to build. However, with many firms unaware of what FLS is we want to see an increase in communication that the banks are open for business.”