The Forum of Private Businesses (FPB) is calling on banks to do more to help small and medium-sized enterprises (SMEs) following the release of new figures.
BDRC Continental has released its latest quarterly SME finance monitor up to the end of Q2 today (August 29th).
Overdrafts are now being used by only 18 per cent of SMEs, the lowest level seen to date on the finance monitor.
Equally, the use of traditional core banking products like loans and credit cards has remained static at 33 per cent.
Instead, 44 per cent of SMEs reported using external finance, up from 39 per cent in the previous quarter.
FPB chief executive Phil Orford MBE said: “This latest data further highlights the urgent need for banks to lend to businesses looking to grow and employ. Without further support for Britain’s SMEs, a key driving force behind the economy, the recovery could stall before it has been give a chance to take hold.”
In the BDRC finance monitor, 10 per cent of all SMEs rated access to finance as a major barrier to running their business in the next year.
Posted by the Secret Businessman