Banks Stopping 1 in 5 Construction SMEs from Growth & Expansion

posted 20.01.2014
1 in every 5 construction firms have been forced to cancel plans for expansion and growth as they are unable to raise sufficient funds from banks.

According to the latest trade survey from the Federation of Master Builders (FMB), 19% of their members have cancelled plans to expand because banks are refusing to lend to them.

Brian Berry, FMB Chief Executive, said: ?The danger is that the continuing refusal of the main high street banks to lend to viable building companies will hold back future growth for years to come.?

?The FMB has been making it very clear to policymakers that until the banks change their lending policies, growth will continue to be hampered and the industry will not be able to deliver the improvements to our housing stock and the increased number of new homes that politicians of all parties say they want to see.?

He said the Labour leader Ed Miliband?s pledge to set up new challenger banks to boost high street competition had helped place a focus on the major banks and their lending policies.

?Any measures that will improve the flow of funds on reasonable terms to small firms will be welcomed by the industry. We want to see all the main parties placing access to finance for SMEs at the heart of their manifestos for the next parliament.?

Recipro sourced this article from Construction Enquirer.

 

 

Category: general, in the news, industry, Paul Jones