Increasing numbers of players in small business loans market

Increasing numbers of lenders are getting involved in the increasingly competitive small business loans market, leaving consumers apparently spoilt for choice.

Lloyds TSB said today, however, that customers must be sure that they will be able to pay back money lent, and to have a thorough risk assessment before going ahead with the loan.

Senior manager of lending at the bank, Stuart Wilson, also said that the current climate – with the Bank of England raising interest rates last week – meant that people looking for loans should take extra care, and that those having difficulty with meeting their repayments should seek out their lender for advice.

Referring to small businesses, he added: “In terms of availability I think there are more and more players in the market who would cater for all types of lending options. So I don’t think there’s necessarily customers who are not able to start up because of a lack of funding, it’s just looking around the marketplace and seeing who is looking to lend to them.”

Increasing competition in the market has led lenders to advertise more and more attractive introductory offers to induce new startups to take out a loan with them. NatWest is launching a new small business bank account this month where all bank charges are free for the first two years.

Tags: lack, tsb, bank of england, month, current climate, lloyds, small businesses