There has been a continued increase in bank lending rates according to the latest ISME, Quarterly Bank Watch Survey released today. 
 
The survey shows that bank lending rates to SMEs increased in the first quarter of 2015. This is the fourth successive quarter of improvement in the success rates of SMEs who apply for bank loans. Demand for credit has remained high at 43%; proof that SMEs are attempting to expand and develop their businesses as the economy shows fragile signs of recovery. 
 
It is estimated that 32% of companies who applied for funding in the last three months were refused credit by their banks, an improvement on the 38% refusal rate, seen in the previous quarter. 
 
ISME CEO, Mark Fielding, commented on the results of the survey, "Bank credit was largely unavailable to SMEs during the recession. This made a difficult business environment even more perilous for small businesses. It seems that the improvements in the economy have inspired the banks to reopen their purses and move towards healthier lending policies. SMEs are currently exploring ways to improve and expand their businesses and greater access to credit will certainly help this process. One major concern is the delay in decision making by the banks, with 27% of decisions pending and the length of the lending process now stretching out to eight weeks."

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