Firms in 'broken relationship' with lenders: Roger House
A boss has
hit out at the “broken relationship” between small firms and banks
amid demands for more competition for lending.
Roger House, chairman of the Kent and Medway Federation of Small
Businesses, said that while more firms were cautiously optimistic
about their prospects for the New Year, there were still concerns
The latest survey found that businesses were “unconfident” that
banks would lend to them. However, while the number of applicants
for loans had fallen, a higher proportion were accepted.
Mr House added: “The fact that fewer firms applied seems to
corroborate this and further highlights the broken relationship
between small firms and the banks.
"The small business bank needs to address this by opening up
competition, especially if small firms are to bring forward
Mr House said it was still tough for small firms, and the
Chancellor’s Autumn Statement last month (Dec) confirmed it was
going to be tougher for longer.
However, small firms still wanted to grow their business and
invest. “In Kent, our FSB Small Business Autumn 2012 Barometer
revealed a greater proportion of small businesses in the county
increased their sales, profits and staffing in 2012 and that a
greater proportion (38%) forecast improved prospects for 2013.”
Some of the Chancellor’s measures would help, he said,
especially raising the tax-free investment limits to £250,000.
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