Banks urged to support small firms

Date: 28th July 2010

More needs to be done to support small businesses at this time, an internet marketing company has said.

Banks' position is that they are giving a lot of funding but many small firms are experiencing problems with cashflow, BrightSet Media noted.

The comments come in response to an announcement from business secretary Vince Cable that the government understands the importance of access to finance.

Dr Cable added that the coalition will work with the financial services industry and businesses to ensure organisations' needs are being met.

"What we need is action on the ground, [which] filters down to real small businesses," said Mario Lafond, director of BrightSet Media.

"Legislation or a stronger code of practice about the time larger companies take to save smaller companies [can help businesses continue trading]," he added.

Earlier this week, a survey from the Forum of Private Businesses revealed that small firms are struggling to access finance to fund their operations.

Posted by Emma Clarke