|Photo by PT money|
Schemes such as Funding for Lending, designed to reduce the cost of business borrowing, are failing to cut costs for smaller businesses, according to a new report. Small businesses are discovering that loan costs are actually on the up thanks to rising interest rates.
In a new report from Syscap, it was revealed that interest rates on new bank loans under £1 million averaged around 3.85% in quarter three, up from 3.76% in quarter two.
However, large businesses borrowing more than £20 million benefited from a fall in interest rates over the same period.
Philip White, chief executive of Syscap, said: “While Funding for Lending seems to be having a positive effect for some, small businesses are still struggling to get loans at commercially viable rates.”
For those planning on starting a business, funding is becoming an increasingly sore subject. Did you secure a bank loan or did you come up with a creative fund your business? Leave us a comment to let us know.
Find us on Google +, Facebook and Twitter