A missed opportunity for credit?

No companies have yet taken part in its scheme to lend cash in return for commercial paper reports the Bank of England today.

The “Secured Commercial Paper Facility” aims to channel money to firms by buying asset-backed commercial paper secured on companies’ assets such as trade receivables and credit card debt.

Historically lack of liquidity slows down an economic up turn. With many traditional sources ailing, this may be a potential source of working capital for many businesses. The route to source it is complex, as authorised members of primary and secondary markets have to place the paper……but if client’s “lenders” cite a lack of their liquidity as a reason for denying support, I’d say challenge them as to why they are not using BoE schemes.