Banks Increase Loan Loss Provisions; Business Cost Reductions; and Business Confidence Levels

Business Finance Bulletin

Opening this week’s Bulletin podcast, we look at the amount banks are setting aside for expected loan losses. We are in the High Street banks’ half-year reporting season and they are setting aside significant provisions for expected loan defaults. How could this impact you when looking for finance? Although experiencing a fall in sales, the impact on small businesses is being offset by cost savings. We review a survey from Hitachi Capital Invoice Finance which reveal the top cost lines where savings are being made. To close, we look at surveys from Lloyds Bank and the Federation of Small Businesses, one which reports businesses are starting to feel more confident, and the other revealing that business owners are still cautious about the next three months.