|
archived news blog
May 2012 (26)
April 2012 (39)
March 2012 (49)
February 2012 (42)
January 2012 (44)
December 2011 (33)
November 2011 (47)
October 2011 (42)
Firms finding it harder than ever to secure finance. Pearson May News Update - Tuesday 17 November
- Tax complaints needing over a year to be resolved
- Firms finding it harder than ever to secure finance
Firms finding it harder than ever to secure finance
Increasing numbers of small and medium-sized businesses are struggling to access the finance they need in order to grow.
In fact, more SMEs now are reporting that the availability of credit and loans is a major problem than there were just three months ago.
This is despite the £200 billion that the Bank of England has pumped into the economy by way of its quantitative easing programme in an effort to boost commercial lending levels.
Those were the findings of the latest Monthly Business Survey published by the British Chambers of Commerce (BCC).
A third (33 per cent) of those firms that responded to the survey said that accessing finance has been more difficult over the last three months. At the end of the second quarter, only 20 per cent of businesses thought that credit availability had deteriorated.
What’s more, the proportion of firms that have experienced easier access to finance halved to just 3 per cent, down from 6 per cent in the previous survey.
Lending, though, was not seen as the biggest obstacle to growth by the majority of the 400 firms polled. Almost two-thirds (64 per cent) cited weak customer demand as the most likely barrier to expansion over the coming 12 months. Access to finance registered 18 per cent, regulatory issues 10 per cent, and exchange rates and input costs both 4 per cent.
David Frost, the BCC’s director general, said: “Our latest survey results show that the biggest issue facing British businesses is still demand for products and services. This means that any economic recovery is still fragile.”
Nevertheless, Mr Frost added that it was clear that the huge sums that have been injected into the financial system by quantitative easing are still not reaching SMEs on anything like the scale required for business to invest for future success.
Mr Frost concluded: “The pre-Budget Report must include measures that encourage companies to invest and improve confidence. Announcing that 2011’s planned increase in National Insurance contributions will be scrapped would be a good start.”
Business General
This section contains a host of advice and information on a range of business matters, from insuring your
business to dealing with employee absence. Simply visit the topics listed below for further information,
ideas, tips and strategies on how to take your business forward.
Click here for more information
See What's On Our Site
Our site also contains:
- A huge database of business information
- Your portal to the web with our powerful search facilities and Links section
Home | Contact Us | Recruitment | Services | News | Knowledge Centre | International
About Us | Companies House Search | Links | Search | Register | Logout
Terms
and Conditions
Technical Problems - email service@pearsonmay.co.uk
Copyright © 2009 Pearson May. All rights reserved.