< Back to previous page

Small businesses still fear bank credit rejection

Published on 27 Apr 2010 under category: legal

Under a fifth of small businesses are willing to approach banks for credit, according to new research.

The Federation of Small Businesses has found in a survey of over 1,400 members that only 18 per cent had tried to get credit from banks.

However, only half (50 per cent) of these received it.

In addition, more than one in ten firms (12 per cent) were being charged between ten and 14 per cent interest on loans, despite the historically low base rate.

The research comes on the back of the government's establishment of the Small Business Credit Taskforce at the beginning of this month.

It was set up to oversee the relationships between small businesses and lenders, following criticisms that borrowing conditions had become much tougher for the former.

John Walker, the national chairman of the FSB, said: "Small businesses continue to bear the brunt of the financial crisis and are being penalised with extortionately high interest rates.

"Trust needs to be restored between banks, bank managers and business as credit conditions remain tight for small firms."

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.





If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.