With banks reluctant to lend, are there better options out there for small and medium companies looking to expand?
Amid the latest round of quantitative easing by the Bank of England there have been fresh calls from the small business sector for help to boost funding for small and medium enterprise projects (SMEs). John Walker, national chairman of the Federation of Small Businesses, said it was important that banks use any extra cash to decrease the cost of credit and increase the availability of lending.
IT finance provider Syscap says the Bank of England has powers to purchase leases from banks through QE, allowing banks to write new leasing business and in turn giving a boost to the funding of SMEs. The idea is that smaller companies can then use leasing to invest in business assets such as machinery and IT.