Small companies need to develop alternative sources of finance to overcome the credit crisis that is engulfing them.
With traditional forms of lending to Small and Medium Enterprises (SMEs) in short supply, the UK industry group the Forum of Private Business (FPB) says that a move away from bank lending could help many firms to stay afloat.
It is urging the UK government to look into creating more alternative options for small businesses which have been denied finance by traditional sources of lending. The call came in the wake of an official report, which found that the banks have broken their promises to lend to small businesses, placing many in danger of insolvency.
While the FPB is continuing to lobby for banks to increase the supply of credit to small firms, it is also arguing that counter-cyclical alternatives need to be put in place which will be less affected by recession and will increase choice and diversity in the marketplace.
To read the full, original article click on this link: Science|Business Move to find finance alternatives for credit-starved small firms
Author: Science Business
