Bank urges business to borrow

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Lloyds Bank is urging companies to take advantage of reduced borrowing costs to accelerate growth and investment after increasing its lending to South Yorkshire firms.

The bank’s wholesale banking and markets division, which funds mid-sized companies and large corporates, says it increased facilities for local firms by five per cent in the 12 months to June and expects to see further growth in the latter half of the year. However, cash deposits have also risen over the same period – up by 34 per cent as companies continue to strengthen balance sheets against a background of global economic uncertainty.

Tim Pryor, area director for the division in South Yorkshire and the Humber, said: “Sheffield is starting to believe in itself again and its focus to core strengths like advanced manufacturing, healthcare and digital media are starting to deliver tangible gains for the region. The Local Enterprise Partnership is well established and playing a strong role in joining the private and public sectors up and a collaborative wider city region focus should see the region consolidate on these gains.

“Despite the uncertainty in the global economy and Eurozone, which has certainly affected business confidence, South Yorkshire’s corporates have continued to demonstrate real strength, and are in a very good place to accelerate forward when confidence in the Eurozone returns,” Mr Pryor added.