Lending conditions 'starting to improve'

Date: 2nd June 2009

Credit and lending conditions for businesses are beginning to improve, new research has suggested.

The Confederation of British Industry's (CBI) latest Access to Finance survey revealed that more businesses had reported an improvement in the supply of new credit during the past three months.

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

Despite, this the group expressed worries regarding access to trade credit insurance.

"A backdated implementation date would be beneficial, as would some assurance that the government's scheme will not come to an abrupt end in October."

When looking at ways to boost cashflow, including the extension of lending facilities, small businesses often use the advice of accountants.

A study by the Federation of Small Businesses published last week showed that the UK's smallest firms were having difficulty accessing government support schemes.