A leading business organisation says small firms are still having trouble accessing finance, despite Government lending guarantees.
The Forum of Private Business (FPB) says its members have reported they are still unable to access finance from banks, despite the Government implementing schemes such as the Enterprise Finance Guarantee, designed to help small businesses access bank loans.
“These financial packages were a welcome next step in supporting small business lending and stabilising the economy, however, despite this government intervention, the early indications are that small businesses are still being bracketed as risky propositions,” the FPB’s chief executive Phil Orford said.
“Many of our members continue to struggle because the banks are still not lending to adequate levels.” Mr Orford said the lending schemes needed to be subjected to scrutiny to ensure they are working effectively. “It is right that the Government, the small business lobby and the banks scrutinise the effectiveness of these schemes in order to do more where it is needed,” he said.
by Kasey Brunt
