Credit availability for firms in UK goes up, reveals a report from CBI

: It is the good time again for the UK companies as they started to get new loans as a sign of economic recovery, said a report from the Confederation of British Industry(CBI).

The results of a survey conducted among seventy three firms exposed that the availability of credit has improved in the last three months in comparison with the percent of deterioration in May.

On its vibrant efforts to boost the economy, in the last week the Bank of England has injected 50bn pounds more as part of it Quantitative Easing (QE) programme. With this, the Central Bank has pumped a total of 175bn pounds to the UK economy. In this situation, experts observe the new report on the availability of loans to business firms as a positive move in the fight against the recession.

"Credit availability has been getting more difficult for many months, so today's results are positive news," Richard Lambert, director-general at the CBI, said in a statement. "It is unclear when bank lending will be flowing freely again, but for many firms credit conditions are at least moving in the right direction."

Though the loans are easier to procure, the survey also found out that the credit process has turned out to be very expensive. Half of the companies surveyed exposed that the cost of new credit had increased in the last quarter.

Yet, the growth in the credit availability was reported more by large firms, the report said that the smaller firms have not yet started to get more loans.

"Smaller and medium-sized businesses are still facing challenging credit conditions and have fewer funding options open to them," Lambert, a former Bank of England policy maker, said in the statement.