Lending to manufacturers shows signs of stabilising

THE availability of finance and the cost of borrowing for manufacturers has begun to stabilise, industry group EEF announced today.

At 17 per cent, down from 25.3 per cent, a smaller proportion of firms reported an increase in the cost of borrowing in the third quarter, compared to the last quarter. However, only five per cent of businesses reported a decrease in the cost of finance.
The tightening availability of loans has slowed marginally, with only seven per cent of companies reporting less access to new lines of borrowing from last quarter, down from 10.9 per cent. However, 13.3 per cent of firms said rates on existing loans rose, up from 12.8 per cent last quarter.