Figures show that Bank of England’s Funding for Lending scheme (FLS) specifically introduced to benefit SMEs has fallen by around £435m in the quarter ending June this year.
This is not as great though as the decline of approximately £723m during the first three months since the turn of the year (January-March 2014).
Government launched the scheme two years ago to enable banks to borrow money cheaply from the Bank of England on the proviso they increase lending to SMEs in the UK.
However, many believe the scheme has been unsuccessful.
Source: insolvency News