However, the reality is that the banks have loaned only £16.8 billion.
The lack of borrowing isn't really due to small businesses having less appetite to borrow. Instead, it is due to more difficult borrowing criteria and higher interest rates. Banks are increasingly relying on rigid, tick-box lending criteria rather than making decisions based on realistic assessments of individual businesses.
Many businesses will surely seek alternative borrowing sources as they have no alternative in this tough environment.
Source: Asian Trader