Trade credit can fill the bank lending void

摘要

The signs of industry recovery are promising and government-backed finance initiatives are opening up new possibilities. Recent ONS figures suggest that government schemes including Help to Buy and Funding for Lending are boosting housebuilding -a clear contribution to the 4 per cent rise in annual construction output. While this is encouraging for all businesses in the sector, what does it mean for those SME building firms that are under financial pressure as banks have withdrawn credit facilities? Such restricted borrowing may well lead smaller construction companies to believe a credit drought is terminal. However, the government's Trade Credit Enterprise Finance Guarantee scheme, which Buitdbase parent firm Grafton Merchanting GB has signed up to - means credit has become more free-flowing again.