LONDON May 29 Britain's small-and-medium sized
businesses (SMEs) have not increased their appetite for
borrowing, despite the proportion making a profit increasing in
the last two quarters, a survey published on Thursday showed.
The SME Finance monitor found that in the first quarter 69
percent of the 5,000 firms surveyed were profitable in their
previous 12 months trading, up from 64 percent in the first
quarter of last year.
Forty-five percent of the businesses said they were planning
to grow in the next 12 months. Twelve percent said they planned
to apply for new or renewed bank facilities and had more
confidence that their bank would agree. Some 82 percent were
happy not to seek new finance over the past year.
"Banks would encourage more businesses to come forward as
almost two-thirds of all applications for finance are approved -
it's clear that firms are a lot more likely to be successful
than they think," the British Bankers Association said.
Meanwhile, a new website backed by the Federation of Small
Businesses, British Chambers of Commerce and Royal Bank of
Scotland, was launched on Wednesday, giving the opinions
of over 5,000 small British businesses surveyed about the
performance of their banks.
Business Banking Insight is designed to show small
businesses how different banks are rated by their peers and to
show which lenders are providing different kinds of products and
services, with the overall aim of improving competition.
(Reporting by Matt Scuffham; editing by Keiron Henderson)