Sponsored Links
More than half of U.K. businesses were forced to use their credit cards to meet their expenses in 2009 as banks showed reluctance to lend, the Institute of Directors reportedly said Tuesday.
In a survey of 1,045 company directors, a quarter said they had applied for bank loans in 2009. Around 57% of directors said their applications were rejected. The survey findings are in contrast with claims made by banks that they are meeting the majority of demand for loans, IoD said in a statement.
"The fact that over half of all businesses seeking finance last year were turned away by their banks is totally incompatible with the banking sector's position on the state of lending in the U.K.," said IoD General Director Miles Templeman.
Further, the institute said the promised government support in the form of the Enterprise Finance Guarantee is not getting through. The scheme is a guarantee facility for small businesses, intended to improve the availability of working capital through term loans and the consolidation of overdrafts.
0 komentar:
Post a Comment