Lack of funding remains a barrier, says expert

Date: 10th September 2010

Small businesses in the UK are being held back by a lack of available finance, according to one expert.

Chris Baguley, managing director of Bridging Finance Limited, said that even firms with healthy balances are finding funds difficult to acquire.

"Even for those businesses with a positive cash flow, the lack of funding from the mainstream lenders can be a barrier to growth," he said.

"A short term injection of cash can help them to invest in the future of their organisation."

The comments follow the launch of a British Bankers' Association taskforce, which has been tasked with examining why banks are failing to lend money to small businesses in the UK.

Experts on the panel include representatives from several banks as well as members of the Treasury, the Department of Business, Innovation and Skills and the Bank of England.

"Despite the apparent improvements that have taken place over recent months, many businesses are still finding their resources stretched as they experience continued difficulties in securing the backing of traditional lenders," Mr Baguley added.

Posted by Thomas Fletcher