Small businesses in the UK 'in need of lending'

Published on 10 Aug 2010 under category: legal

Small companies in the UK could find that they face commercial litigation if they are unable to obtain finance.
The latest report from Markit/CIPS Services PMI has found that business activity has slowed down in the past year.
Slower growth was attributed to weaker demand from the public sector, with firms experiencing historically low rates of confidence.
Thomas Parry, research manager at the Forum for Private Business, said: "There are positive signs in terms of banks reporting fewer bad debts and our own members seeing an increase in turnover and in some cases profitability."
However, he added that the current low rates of lending and smaller overdrafts mean that businesses were still uncertain about the future.
"Conventional economics dictate that when the Bank of England will increase interest rates it will be at a fairly rapid rate and could leave our members having to pay interest of eight or nine per cent."

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