The latest Bank of England Credit Conditions Survey indicated that the general availability of credit to small and medium sized companies stayed largely unchanged in Q1 despite an expected increase of credit availability to that sector.
Lenders suggested that the changing economic outlook pulled down credit availability and that there may be further restrictions to credit availability in the corporate sector in Q2 because of the tighter wholesale funding conditions brought in since mid-2011.
Noel Meredith, director at United Trust Bank said: “It’s interesting that a quarter of brokers found the availability of development finance harder to come by in the latter part of last year. It appears that there’s still little appetite from mainstream lenders to increase the availability of credit to business and this could affect developers looking to raise finance for projects through their usual channels.
“Many lenders have restricted their loans for development finance or withdrawn from the sector altogether but United Trust Bank has maintained its presence as a lender for good quality residential developments. Whilst some lenders have come and gone United Trust Bank has been a reassuring constant in the development finance sector and we’re always happy to talk to brokers when they’ve been turned away by their usual funding sources.
“2011 was an extremely successful year for United Trust Bank and early indications are that 2012 will see us build on that growth as other lenders keep a very tight grip on their purse strings.”
