Tax & Accounting News

Small Firms Still Struggling To Access Funds

26/11/2009

The number of small and medium-sized firms which are struggling to access the finance they need is higher than it was three months ago, according to the latest figures from the British Chamber of Commerce (BCC).

One-third (33%) of the companies who responded to the organisation’s latest Monthly Business Survey said accessing finance had become more difficult over the past three months, compared to only 20% at the end of the previous quarter.

Just three per cent said access to finance had got easier, despite the £200billion pumped into the economy through the Bank of England’s ‘quantitative easing’ programme.

Despite this, access to finance was not considered the biggest obstacle to growth among the 400 firms polled. Weak customer demand was cited by 64% of respondents as most likely to be the major problem over the next 12 moths, followed by finance at 18%, regulatory issues at 10% and exchange rates and input costs, both at 4%.

BCC director-general David Frost said: “Our latest survey results show that the biggest issue facing British businesses is still demand for products and services. This means that any economic recovery is still fragile.”