Businesses offered tips on getting credit

Date: 3rd September 2009

New guidance from the British Chamber of Commerce (BCC) showed today that imposing a "more rigorous" business plan could help small firms secure credit from banks.

According to an economic policy adviser for the business group, sole traders and other entrepreneurs should also consider switching banks if they are turned down for credit by their current provider.

The comments follow the release of a survey from manufacturers' organisation the EEF, showing that 47 per cent of firms have noted an increase in the cost of loans over the past two months.

This is the highest proportion since the survey began in 2007 - and reflects continuing restrictions on financing in the wake of the credit crunch.

Steve Hughes at the BCC said: "Since the credit crunch occurred businesses have been required by banks to offer more information about their practises, to access that credit."

He added: "If [the problem is] having difficulty accessing finance full stop, it might be a case of having a more rigorous business plan, to allay bank's fears about credit risk."