FPB concerned with SMEs ‘turning to inappropriate finance’
28 November 2013
The Forum of Private Business (FPB) has expressed concern at a report it says shows SMEs are turning to “inappropriate finance” as a result of a lack of confidence in banks as they look to gear up for growth.
Thu, 28 Nov 2013The Forum of Private Business (FPB) has expressed concern at a report it says shows SMEs are turning to “inappropriate finance” as a result of a lack of confidence in banks as they look to gear up for growth.
The SME Finance Monitor, available online, shows business use of credit cards to fund growth is on the increase, from 15% in Q4 2012 to 20% in the most recent survey. This compares to just one in three small businesses using what the FPB calls “traditional banking products”.
That finding may suggest business owners using credit cards as a short-term solution to cashflow issues, to sidestep overdraft charges.
Also evident is an increase in businesses injecting personal funds, up from 38% last year to 42% today.
FPB chief executive officer Phil Orford MBE says: “This latest data further pinpoints the urgent need for the banks to convince the small business community that they are here to support businesses looking to grow and employ, which has not been helped by recent press coverage.
“Without clear support and positive action from the banks, this could remain a continuing obstacle and threaten recovery in 2014.”
The SME Finance Monitor, available online, shows business use of credit cards to fund growth is on the increase, from 15% in Q4 2012 to 20% in the most recent survey. This compares to just one in three small businesses using what the FPB calls “traditional banking products”.
That finding may suggest business owners using credit cards as a short-term solution to cashflow issues, to sidestep overdraft charges.
Also evident is an increase in businesses injecting personal funds, up from 38% last year to 42% today.
FPB chief executive officer Phil Orford MBE says: “This latest data further pinpoints the urgent need for the banks to convince the small business community that they are here to support businesses looking to grow and employ, which has not been helped by recent press coverage.
“Without clear support and positive action from the banks, this could remain a continuing obstacle and threaten recovery in 2014.”
