Small firms still waiting for support from banks
Wed, 11 Nov 2009
Small businesses still need greater levels of support from the banks if they are to contribute to economic recovery in the UK, it has been claimed.
According to Stephen Alambritis, head of the Federation of Small Businesses, lending to businesses is continuing to fall, even among larger firms.
However, he told the Guardian that small firms are unable to issue corporate bonds in the same way as their bigger rivals when they need a cash injection.
Mr Alambritis said they have to go to their local bank manager and make the case for credit to be provided.
But even when they are able to succeed in proving the viability of their operation, the cost of accessing finance can prove prohibitive, he suggested.
"If small businesses are able to get loans, they now come with all sorts of charges and fees added on," Mr Alambritis stated.
"The government must really keep an eye on the banks because 89 per cent of small firms are tied to the big four high street banks."
Last month, the Forum of Private Business warned the government not to cut financial support for small businesses if it makes spending cuts to reduce the public deficit.
How Microsoft can help
Use Excel 2007, part of the Office 2007 suite of applications, to gain a clearer insight into your finances. Get a free 60-day trial today.
More
Small Business Finance News
View all articles
|
|
