FPB urges banks to help SMEs

Date: 2nd October 2008

Banks have been told that they should be doing more to help business start-ups on the back of soaring running costs.

The Forum for Private Business (FPB) believe that lenders are wrong to cut back on the facilities and services they are offering to small to medium enterprises (SMEs).

Recent research by Cambridge University discovered that the level of funding required by a small business has soared to an average of £470,000.

FPB chairman, Noel Guilford, said: "Just as the funding requirements of small businesses are increasing because of the economic downturn, banks are cutting back on both the level of facilities they provide and services they offer.

"The FPB is urging banks to recognise the difficulties small businesses are facing."

While running costs have increased in general, some services, such as small business accountants and advertising have actually seen costs decrease during the credit crunch, according to a recent study.

This month will see the new deadline for paper self-assessment tax returns, which falls on October 31st.