Commenting on the extension of the Funding for Lending Scheme, Louise Beaumont, Head of Public Affairs & Marketing at GLI Finance said:
“The latest figures released today by the Bank of England illustrate that it is clear SMEs still need more support in getting the access to finance that they need to grow. The modest increase in the number of participants is countered by a reduction in net lending of £0.2 billion in the last quarter of 2015.
“The scheme is failing in its aim to incentivise banks and building societies to increase access to capital for the UK’s SMEs and more needs to be done to raise awareness of alternative finance as a viable option whilst driving the behavioural change necessary to prevent over-reliance on traditional banks as the first port of call when seeking credit.
“We must focus less on individual policies and more so on the bigger picture. SMEs are the lifeblood of the economy and we must strive to create a better environment in which lack of available credit is no longer an issue.”