Credit conditions 'to worsen' for small firms

Date: 11th February 2009

Access to credit for small businesses could be set to worsen over the coming months, it has been found.

An investigation by the Confederation of British Industry (CBI) discovered that 59 per cent of businesses believe accessing finance will become even more difficult in the near future, with two in five firms having dismissed staff because of this.

Director general of the CBI, Richard Lambert, commented: "We have urged the government to move as quickly as possible to set out when the various support packages to tackle the credit crunch will come into effect, and to implement them quickly."

He added that "good, viable businesses" were being faced with the prospect of making some of their most skilled worked redundant.

Managers who believe their organisation is having cashflow problems should consider consulting an accountant.

Earlier this week, the Federation of Small Businesses called for the government to provide small firms with more support through the recession.