Bank lending to small businesses falls by £400m

10 Dec 2014

Written by Alice Smithson

A new Bank of England report has revealed bank lending to small UK businesses has fallen by £400m, despite the Government’s Funding for Lending scheme. Designed to provide cheaper small loans to businesses, the FLS is also failing for larger companies _ with lending down £3.6bn in three months.

Despite these dramatic numbers, figures are not as steep as earlier in the year. This change reflects suspicions that the economy is improving overall, as small business are in less need of financial support. However, small business still find credit availability very difficult, with 52% reporting credit application possibilities as ïpoor’ or ïvery poor’.

New forms of business lending are cropping up to reflect the lack of credit availability for small businesses, such as peer-to-peer lending and crowdfunding. However, salons in the UK could benefit from a much simpler and cheaper solution to boost their income. Salon booking software such as i-Salon enables managers to improve their business administration and streamline booking processes in order to boost budgets. Time saved from juggling calendars, as well as additional marketing options such as text messaging promotions, means that salons using i-Salon salon booking software gain an average of £385 per week in revenue. Over the course of a year, that amounts to an additional £20,000 _ much more than the average small business loan, and all profit.

Avoid applying for loans and credit options for your salon expansion by using i-Salon salon booking software. Contact us today to find out just how we could help you maximise your profits.