Business Advice for all UK firms from starting a business to flotation
Small firms turning to family and friends as bank credit dries up
Over 500,000 small and medium-sized companies are being forced to turn to family and friends for finance as bank loans dries up, according to research from Close Invoice Finance.
The survey of over 500 SMEs discovered that less than 6% of respondents are confident that their bank will provide them credit this year - compared to 73% in last years poll.
540,000 SMEs are being forced to use personal relationships to finance their companies due to the lack of available banking credit - despite the governments £37bn bailout and promises to stimulate bank lending.
"The relationship between banks and SMEs has collapsed, with severe repercussions for the sector as a whole. With banks now closing their doors to SMEs, owners are relying on friends and family for financial support, placing immense pressure on these relationships," said David Thomson, chief executive officer of Close Invoice Finance.
"As the recession takes hold, the adage ‘Cash is king' has never been so true. SMEs need to be far more creative in how they source working capital and deadly serious about tackling late payment."
Post Date: February 20th, 2009
The survey of over 500 SMEs discovered that less than 6% of respondents are confident that their bank will provide them credit this year - compared to 73% in last years poll.
540,000 SMEs are being forced to use personal relationships to finance their companies due to the lack of available banking credit - despite the governments £37bn bailout and promises to stimulate bank lending.
"The relationship between banks and SMEs has collapsed, with severe repercussions for the sector as a whole. With banks now closing their doors to SMEs, owners are relying on friends and family for financial support, placing immense pressure on these relationships," said David Thomson, chief executive officer of Close Invoice Finance.
"As the recession takes hold, the adage ‘Cash is king' has never been so true. SMEs need to be far more creative in how they source working capital and deadly serious about tackling late payment."
Post Date: February 20th, 2009
.
.
Accounting Advice | Banking & Finance | Business Continuity | Entrepreneurs | HR/Payroll Advice Insurance Advice | International Trade
Internet Advice I.T. Advice | Legal Advice | Marketing Advice | Office Management | Pensions & Benefits Property/Relocation | Recruitment Advice
Starting a Business | Telecommunications | Training/Education Travel Advice | Utilities Advice | Vehicles
copyright © 1998-2018 Newbusiness.
Homepage | Terms & Conditions | Copyright & Trademarks | Privacy Policy | Sitemail & Forum Policy | Sitemap