|
News Index
Next
Previous
Bank fees and costs for SMEs have risen since the end of last year, claims a
report by the ICAEW and Grant Thornton.
Earlier in August, the government set up a task force involving the major banks
and key government departments to examine whether banks are making life too
difficult for smaller businesses.
Many small businesses report that they are unable to borrow from banks because
their lending criteria are too restrictive or too costly.
Banks say that demand for loans from SMEs has fallen as businesses focus on
paying back loans.
As well as noting a rise in fees, such as those levied for arranging an
overdraft, the ICAEW supports the banks' assertion about demand, saying many
SMEs were concentrating on paying off debts and managing with the money they
have.
Michael Izza, the chief executive of ICAEW, commented: "UK businesses that came
through the recession are now facing the challenge of surviving the recovery.
"They still don't know what the future holds and are uncertain about how the
mood of fiscal austerity will impact the economic recovery."
A separate report, from the National Association of Commercial Finance Brokers (NACFB),
shows commercial lending is still sharply lower than at the height of the
lending boom in the mid-2000s.
At the height of the lending cycle, they say nearly £20 billion was being
borrowed, but this went down to under £7 billion and is now just over that.
Despite complaints from some businesses about the banks attitude to lending, the
ICAEW survey found the percentage of SMEs saying access to capital is a
challenge fell to 20%, from 30% at the end of 2009.
It added that businesses reported late payment was a "considerably more stubborn
problem" for them.
The ICAEW report also found waning confidence among businesses, despite what it
calls a noticeable improvement in their financial health.
Source: Credit
Control Journal
|
