COMPANY finance directors in Yorkshire remained concerned about the effects of bank lending policies, a survey has revealed.
Research by business services firm Grant Thornton showed that 54% of FDs in the region thought that lending policies were driving up debtor days for SMEs, an increase of 12% on a year ago when a similar survey posed the same question.
In 2011, some 83% of respondents said that bank lending policies were encouraging businesses to hold onto cash reserves at the expense of the general economy. This time, the figure stands at 77% – but still shows a lack of confidence in liquidity in the commercial lending market.
Jonathan Riley, senior partner at Grant Thornton in West Yorkshire, said there had been a slight improvement in the tendency of firms to spend cash reserves.
But SMEs were seen to be funding growth by bearing the cost of additional debtor days.
The survey showed that a third of finance directors considered changing banks in the past year, just half the number when the 2011 survey was carried out and a welcome sign for lenders who had seen a great deal of turnover in recent years.