Look to high street banks for commercial property funding

Those looking for financial backing to purchase a commercial property should consider high street banks, as they may well be able to provide suitable finances.

According to the British Bankers' Association, (BBA) these financial institutions "provide the bulk of lending to UK businesses."

Some £6.8 billion was lent by high street banks last month and there is a currently a level of stability in loans for smaller firms, the BBA noted.

"This reflects competition in the market and looks towards possible growth in demand. Banks are willing and able to lend to businesses where they can see how the money will be paid back and where firms have a viable business plan,” added the BBA.

The organisation also mentioned that it was possible that a certain proportion of those funds had gone a long way towards enabling firms to rent or buy a commercial property outlet.

The comments come in the light of a green paper from the Department for Business, Innovation and Skills, which aims to address the problem of accessing finance for many private-sector organisations.

Chancellor of the Exchequer George Osborne said, "Accessing finance continues to be a challenge for many British businesses,” while business secretary Vince Cable stated that he has heard many cases of businesses in difficulty around the UK that are struggling to secure bank loans.

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