This chart illustrates net financing by UK corporates. Firms can finance their activities from three sources; issuing shares (raising equity), issuing bonds, or lending from banks. The chart above shows that on a net basis, the availabiity of funding has declined during the first half of this year.
As the last data point indicates, firms are moving away from bank lending and towards equity and capital issuance. However, the decline in bank lending has largely off-set this trend.
Firms are struggling for capital, and therefore the prospects of a sustained recovery remain bleak.