Credit conditions on the up, CBI study shows

Date: 4th June 2009

Access to credit for small businesses is slowly improving, according to the Confederation of British Industry (CBI).

Figures from the CBI show that only a fifth of UK companies reported deterioration in lending conditions during the past three months, compared to 62 per cent at the start of the year.

This could be down to the launch of new government finance schemes at April's budget and the help accountants have given businesses in accessing them.

CBI chief economic adviser Ian McCafferty said: "Credit availability is still a concern, but the severity of the situation is easing compared with a few months ago.

"[Businesses] are still finding it difficult, but they expect that the supply of existing credit will get slightly easier over the next few months."

This week the government revealed that it would be launching an inquiry into whether further small business capital finance programmes were ARE needed.