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Bank loan slump since 2007

Jan 04 2011

The number of UK companies being granted business loans and mortgages has plunged by 46 per cent since 2007

The number of UK companies being granted business loans and mortgages has dropped by 46 per cent since 2007.

Commercial credit referencing agency Graydon UK researched the number of successful company financing deals registered at Companies House over the last ten years.

The results show that there were 88,000 fewer mortgages and loans registered in 2010 than in 2007.

Martin Williams, managing director of Graydon UK, says, ‘While these figures support the commonly held view that bank lending has been significantly held back during the credit crisis, the dramatic fall in new loans and charges registered highlights the extent to which businesses have been forced to tighten their belts in the absence of finance.

‘Banks are set to come under further pressure from the government to increase lending to businesses in 2011 or face a higher annual bank levy,’ he adds.

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