Commercial litigation rates to rise with low lending rates?

Published on 9 Aug 2010 under category: legal

More UK firms could find that they face commercial litigation because of the current low rate of lending from banks.
Prime minister David Cameron highlighted the problem this week, following a meeting with the governor of the Bank of England.
He said: "We've got to make sure that money is getting out of the banks and into businesses.
"I want... to make sure we find ways of encouraging the banks to help small businesses particularly, many of whom have got good ideas and are prepared to meet the terms of lending but can't get the money out - so it's got to happen."
This week has seen a series of strong profit announcements from big high street lenders including HSBC and Barclays.
However, current rates of lending remain low, leaving many small companies unable to cope with contingencies and late payments.
Many firms in the UK could become embroiled in commercial litigation unless they are able to meet payment dates.
According to the Federation of Small Businesses, there are 4.8 million small businesses in the UK.
The organisation has been campaigning for a small business adjudicator, a proposal made by the former Labour administration.

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