Lending to small businesses 'crucial'

Posted: 09 Apr 2009 12:53:44 GMT

More borrowing powers need to be offered to small and medium enterprises (SMEs), the Finance and Leasing Association (FLA) has suggested.

The FLA has published a statement claiming that the chancellor Alistair Darling should include in his budget an option to increase cashflow among SMEs.

The sentiment behind the calls is similar to the need for greater borrowing powers in the mortgage sector, which could help homeowners sell their property.

Selling a property online, however, could increase the chances of a sale thanks to more potential buyers seeing the property.

Phil Orford, chief executive of the Forum for Private Business, said that confidence is required to kick-start the sector.

"Rebuilding confidence is key to ensuring that small businesses are able to survive and, ultimately, as the economy recovers, begin to grow again," he said, adding: "Improving the corporate tax system to better support investment is one way to achieve this."

With the mortgage industry in a similarly deadlocked position, avoiding expensive estate agents by selling online could mean a home can be sold for cheaper, therefore attracting yet more buyers.



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