Banks squeeze SMEs

Banks are getting tougher on small businesses, despite pressure from the Government to help them, according to the Federation of Small Businesses (FSB).

In a survey the FSB found a third of small businesses said they had been hit by changes their banks had made, either putting up their fees or reducing their overdraft.

The survey of more than 6,000 of its members showed small firms are still having problems accessing new finance and are not benefiting from tumbling interest rates.

A third of small firms also said their bank was less helpful now than it had been before the economic downturn began.

FSB spokesman Professor Alistair Anderson said: "These figures demonstrate how times are really tough for small firms and how access to finance continues to be a realchallenge, with the majority indicating that the banks are failing to be more helpful - precisely at a time when small businesses most need their support." 

Source: EN