Concern at UK small businesses' reluctance to borrow

The newly-released SME Finance Monitor highlights the Forum of Private Business’s concern of a protracted recovery

Spending chiefs have urged the creation of a new £200m fund to help SMEs
Small businesses' reluctance to borrow may point to signs of a protracted recovery

Despite the positive news showing improving business confidence in the economy and continuing export growth, the latest information from the SME Finance Monitor released yesterday continues to highlight the Forum of Private Business’s ongoing concern that small businesses’ reluctance to borrow may point to signs of a protracted recovery.

Figures for the final quarter of 2013 showed the number of businesses which see the current economic climate as a significant obstacle to running their business in the next 12 months has fallen significantly to 21%, five percentage points down.

Phil Orford, chief executive of the forum, said: “The survey shows that most applications to banks are successful, though there is a need to work on finance for some newer businesses that have higher decline rates.”

Journalists

David Whetstone
Culture Editor
Graeme Whitfield
Business Editor
Mark Douglas
Newcastle United Editor
Stuart Rayner
Sports Writer