Lot of money is needed to establish a big business unit from the scratch. In most of the cases businesses rely on banks for funds. However in a recent survey it has been confirmed that about 60% of UK business units have been denied bank loans. Hence most of them are forced to use credit cards or borrow from other sources. The report clearly undermines the claim of banks to increase lending.

bank loans denied

To this the British Banker’s Association has reacted saying that the results of the survey are quite misleading as the sample of the survey was small. It also said that the government has spent billions of pounds to finance the businesses. In this case both the IDA and the BBA are giving argument to prove their points.

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