The Trends in Lending report published by the Bank of England has shown that Funding for Lending Scheme net lending to SMEs is down £400m(507.26m) this quarter.
The fall in lending to large corporates was also down by a larger sum; £3.9bn over three months to September 30.
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The Bank of England said gross lending by all UK major financial institutions (MFIs) to UK non-financial businesses increased by 21% in the twelve months to August, compared to the previous period.
Repayments by businesses also increased, though by less, and remained higher than gross lending; contacts of the Bank’s network of agents continued to report that many SMEs preferred to repay debt.
At end August 2014 and UK businesses had £318bn of corporate bonds outstanding as at 2014 Q2.
The stock of asset-based finance was smaller, though grew by 10% in the year end-June 2014, according to data from the Asset Based Finance Association.
The Bank of England report also noticed that SME alternative finance including P2P and crowdfunding increased £300m in 2014 Q2 compared to the previous quarter.
