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UK lending figures point to cooling economy, market turmoil

LONDON (Reuters) – Lending to British consumers rose last month by less than expected and the number of mortgages approved by British lenders eased back, according to Bank of England data on Monday that point to tougher times ahead for Britain’s economy.

The BoE said net unsecured consumer credit rose by 745 million pounds ($861 million) in September, the smallest monthly increase since December 2021, following a 1.215 billion pound increase in August. A Reuters poll of economists had pointed to net lending of just under 1 billion pounds.

Mortgage approvals totalled 66,789 last month, down from 74,422 in August, the BoE said, broadly in line the forecast in a Reuters poll.

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“September’s money and credit figures point to further signs that consumers have been become more cautious in response to the weakening economic outlook,” said Ashley Webb, UK economist at consultancy Capital Economics.

The BoE figures showed a huge jump in the money supply, which on the M4 measure rose by 2.1% in September alone.

The last time there was a bigger increase was in March 2020, when financial market turmoil early in the COVID-19 pandemic led to a squeeze on money market funds which had to sell assets such as government bonds and Treasury bills for cash.

September’s jump likely reflected a fire-sale of pension fund assets to meet collateral calls in the wake of the ill-fated Sept. 23 economic growth plan, from the government of former Prime Minister Liz Truss.

The sub-category of M4 which covers companies like pension funds and life assurance firms jumped by a record 67.8 billion pounds in September, more than double the previous record.

Source: UK Investing

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Getting the appropriate loan for your small business

There are countless good people out there who would love the opportunity to start their own small business, and that’s a fact. However, this isn’t always possible due financial constraints that prevent them from saving up enough capital to achieve their dreams. If you’re one of these people, then you most probably know that you have the option of financing your venture through a loan. The problem is that you may not know much about such loans meant for small businesses.

You want to know what to go for when you’re looking to take a loan from a lender. You want some insights regarding the kind of lender you need and the appropriate loan for your business. This applies regardless of whether you’re starting up a new small business or looking for additional capital to finance your enterprise’s expansion. In that case, you could find the information here quiet helpful in that sense. Here is what you should look for when sourcing for the most appropriate loan for your small business:

It should be easy to get

If you’re setting out to look for a good bad credit guaranteed loan, the smartest move would be to look for one that’s offered with fewer restrictions on factors like age, gender, type of business or location. Also, it’s much better if you can find a lender who doesn’t place too much weight on credit scores.

In essence, the best loan for a small business should be easily accessible. You don’t want a lender who throws out people’s loan applications based on minor stuff like their age. Nobody wants that.

Flexible payment period

The worst mistake you can make is deal with a lender who doesn’t offer a good length of time for you to effectively pay back the loan. That’s always a trap especially used by shylocks in the streets out there. Avoid that.

A good loan agreement should provide for you to pay back the principal amount plus the interest in installments over a given period of time, and these installments should be appropriate enough not to hurt the business.

Have a good grace period

A loan given without a grace period is a total trap! There’s no wisdom in acquiring a loan for a business only to start paying it back the next day even before you invest. Who even does that?

If you’re serious about picking the best deal, look for one that offers a good grace period to allow for the investment to take root and the business to start realizing some profits. The period may be a few months depending on the lender’s policy. You can then use the profits generated as installments to cover the payment. That way, progress is assured.

Favorable terms of servicing the loan

First off, no smart person will do business with any entity that comes across as vague when spelling out their terms of engagement. You need to be in the know so you can be ready in case of anything unexpected.

For example, the lender should clearly spell out what happens when you miss an installment. You don’t want to deal with a lender who slaps you with a 100% fine for missing a single installment. Also, you should know what provisions are in place in the event that you pay back all the money before the agreed period is due – any incentives given or interest reduced? Pick the most appropriate loan with respect to that.

Credible lender

You’re not going to take a loan only to fall into a deeper financial pit. To avoid this, you need to vet the available lenders and pick the most authentic. You would hate to take a loan from a crafty lender that short-changes the terms of contract or gets rude during the debt collection.

There have been cases of some lenders reducing the payment period, slapping the borrower with hidden extra charges and even inflating the installment amounts. You want to avoid those by all means.

Reasonable loan amount

If your business needs $50,000 and a lender can only offer $5,000, walk away. You need a loan that covers your needs without having to involve many lenders. Also, you don’t want excess money that could turn into a liability. If a lender is trying to force you to take $100,000 instead of the $50,000 that you really need, walk away. You don’t need that.

Low or no application processing fee

You understand that a small business doesn’t need a huge loan, and that’s why you can’t allow it when a lender sneaks in some annoying charges into the loan application process. If the processing fee is too much, dump that lender. In fact, it would be best if you could find a loan that doesn’t involve slashing off an amount of it in the name of processing fees.

Reasonable collateral security

What do you think of a loan that requires you to put up your house as collateral security just to get $2,000? Ridiculous!

A fair loan should require reasonable security as compared to the loan amount taken. Don’t take up unreasonable offers.


Some lenders get more business than others because they offer convenient loans and processing services. If you’re in business, you obviously want a loan that gets granted quickly and with less bureaucracy. Sadly, some lenders will put you through piles of forms and documents before they can give you the money. That’s not convenient, and definitely not good for business.

You want a loan with a fast application process. The earlier the money hits your account, the earlier you invest and the earlier you start generating profits. Now that’s what convenience sounds like, and that’s exactly what you want.

The points above serve to opine that taking up a loan from a lender may seem easy, but you need to exercise due diligence before you engage in such a transaction. You don’t want to try boosting your financial freedom with a loan only to end up in a stressful situation. Knowledge is power, you know!

Source: London Loves Business