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FPB: Limited access to finance hindering business growth

Date Added: 23/08/2010  

Looking for business debt advice in Birmingham? Call 4R Business Recovery for help.

Firms taking business debt advice may find it difficult to expand, as access to finance from banks remains limited.

According to the Forum of Private Business (FPB), not being able to secure loans and overdrafts from banks can have "very serious consequences" for smaller enterprises.

Chris Gorman, spokesman for the FPB, said this is because it is inhibiting their growth and their ability to withstand tricky economic conditions.

"It can mean that they end up going out of businesses and it could also add to inflation in wider terms," he commented.

Mr Gorman added that overdrafts and loans are particularly important for very small firms that do not have financial resources to fall back on.

He said if several clients do not pay their bills promptly, or trade drops for a single month, these businesses require support from the banks just to "plug that gap" for a brief period.

This comes after the FPB stated that many banks are undervaluing commercial properties.

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