Firms feel lack of available credit
Just under half of companies surveyed as part of the County and City Enterprise Boards’ (CEB’s) latest half-yearly business survey, said they felt credit availability was worse now than six months ago. The overall sense from the report suggests the credit crunch is worsening and the very future of many companies is in the balance.
“The survey highlights a number of key issues: the significant cash flow difficulties with which many businesses have to work and the continuing lack of access to overdraft and loan facilities from the banks,” said Michael Tunney, chair of the CEB Network. “With customers and suppliers holding on to cash for as long as possible and limited working capital available from the banks, many businesses are struggling to meet day-to-day costs. If the situation continues, many good businesses will be forced to close as a result.”