Access to Finance: The landscape for lending

THE aftermath of the 2008 financial crisis has created a new environment both for those seeking funds and the institutions providing it.

In our latest supplement, produced in association with Barclays, we look at the state of play in the North West market.

Although it is clear the rules have changed and lenders’ attitude may have changed, it is wrong to say funding is not available.

To download our Access to Finance Supplement click here.

Many companies too have lacked confidence to borrow to invest in growth, and have instead paid down debt.

Michael Hartig, head of Barclays in Manchester said that against a backdrop of reduced lending it is taking market share.

“Barclays has seen its lending grow and has taken market share from the competition. Term lending has grown to £43.6bn in 2011, with £14.7bn of that being gross new lending to the SME sector.

“Our desire to provide corporates with working capital and investment has not changed over the cycle. But corporates at the top end have been deleveraging: paying down debt and/or going to the bond or equity market to give themselves cash.

“Because they are deleveraging, businesses are not making big strategic investments. They are perhaps holding off acquiring a target business and waiting to see how the market pans out.”

To access the Access to Finance Supplement, click here .