FPB: Finance issues denting business confidence

Date: 12th July 2011

Small businesses operating in various industries across the UK are having their confidence dented by prolonged difficulties accessing finance.

That is according to the Forum of Private Business (FPB), which said that both established firms and people looking to start up a new business are facing difficulties when applying for loans.

It comes as reports indicate that the manufacturing sector in particular has suffered a decline in confidence despite a recent resurgence in the business activity.

Phil McCabe, a spokesman for the organisation, said that it is likely that the confidence dip can be attributed to financial issues.

"We know that there is still a problem with established firms and startups in accessing finance, either through commercial lending or being paid on time," he commented.

"Presumably, that massive problem will have an impact on confidence across all sectors but particularly manufacturing."

The expert also claimed that manufacturers are concerned about sales and marketing and worried about how they can reach out to their customers.

Posted by Jacob Williams