More to be done on business lending – FSB - Business - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

More to be done on business lending – FSB

More to be done on business lending – FSB

Category: Business

Updated: 10/08/2009
First Published: 10/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Firms are seeing their chances of securing lending stifled at a result of bank mergers and recapitalisation, the Federation of Small Business (FSB) has warned.

Two years on from the beginning of the banking crisis that has rocked the UK economy, the FSB has said that changes in the banking sector mean that business owners have seen the number of credit avenues dry up significantly.

As a result, many have nowhere to turn if their application for lending is turned down by the major banks and building societies on the high street.

It is estimated that a quarter of small firms is still struggling to secure affordable finance, despite bank bail-outs and a record low base rate of interest.

Consequently, the FSB is proposing a raft of new measures to ensure that small businesses have a fair chance of securing affordable credit.

They include: restructuring Regional Development Agencies to offer loans; turning the Post Office into the Post Bank that would operate either as a state owned bank or as a mutual or trustee bank; and actively promote financial intermediaries, recently created by the Government, to viable small businesses unable to access finance.

Of the changes, FSB national chairman, John Wright, commented: "This would increase the choice of finance on offer to business owners, therefore enhancing the prospect of survival and helping them play their part in stimulating the economy and getting the UK out of recession and onto a steady recovery."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Business Moneyfacts Awards finalists announced

Are you in the field of business finance? Then you’ll be familiar with the Business Moneyfacts Awards, the highlight of the year for the industry, and you’ll also be pleased to hear that the finalists for the 2017 ceremony have just been announced!

Business owners – do you have a cash buffer?

Building up a cash buffer can be a vital part of business management, particularly in uncertain times. It’s therefore little surprise to find that SMEs built up significant cash reserves in the lead up to the referendum.

Business owners – are you missing out on returns?

Running a successful company demands strong organisational skills, business acumen and a keen eye for finances, which is why it’s so surprising that many business owners could be missing out on returns because they don’t know their interest rate.