The Bank recently released their financial stability report for November, where they again warned of the “pockets of risk” caused by consumer credit, a sentiment they had expressed back in September.

There has also been a slowdown in corporate borrowing, according to the new report. Jeremy Cook, chief economist at WorldFirst, claims the uncertain economic outlook has led to an unwillingness amongst companies, to invest.

The report further found that loans and overdrafts applied within SMEs had dropped by £400 million between September and October. Jeremy Cook is concerned for the possible implications of this, where the “backbone” of the UK economy are either unable or unwilling to fund possible growth opportunities.

The Credit Protection Association supports this renewed caution to personal finances, allowing consumers to borrow outside of their income can lead to financial difficulties. We must continue to warn against suppliers extending credit to any individual or business who you do not think will be able to pay. While this may concern SME business leaders who are hoping to expand their business, CPA can help free up your cash flow without involving high street lenders. Get in touch!