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1 in 3 Small Companies Struggling To Access Credit

Posted on 20. Mar, 2009 in General News

According to a survey of 6,000 of its members by the Federation of Small Businesses, a third of small firms are struggling to access credit.

The research revealed banks are reducing commercial overdraft facilities and seeking more security for loans.

Nearly one in five companies said they were being hit by higher charges. Two in five admitted to cutting staff numbers or hours in the battle to survive.

Source: Daily Mail 20-03-2009

A report by the British Chambers of Commerce revealed just 1 company in 250 had secured a loan under the £1.3 billion Enterprise Finance Guarantee initiative.

As the credit-crunch continues, there is all the more reason for the Government to make this initiative all the more easily accessible.

Tags: Gaining Credit, Small Business