Only a quarter of small firms aware of flagship lending plan

Julian Harris
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FEWER than a quarter of small and medium sized enterprises (SMEs) are aware of the government’s flagship Funding for Lending Scheme (FLS), an influential survey has revealed this morning.

Yet the research, conducted by BDRC Continental, also revealed that the programme convinces many small firms that they are more likely to be granted loans by Britain’s banks.

The SME finance monitor said that while only 23 per cent of SMEs were aware of the FLS, a fifth of those interviewed in quarter four of 2012 thought that such schemes made it more likely they would apply for funding.

The survey also showed that 71 per cent of applications for loans or overdrafts by SMEs were approved by lenders.