03-06-2008
Business start-ups experience credit squeeze
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
A recent poll has found that up to 56 per cent of lenders plan to become "more picky" as to who they will lend to in the remainder of 2008, according to reports.
Graydon UK, a credit management specialist, has warned that new companies could find it hard to get credit following a poll of 400 lenders in the UK.
It found that only two per cent of lenders said they would be relaxing their lending criteria over the coming months.
Martin Williams, Graydon UK's managing director, told the Financial Times: "Suppliers are looking long and hard at those companies who are asking them for credit. People are asking for better credit scores and so rejecting more companies."
New business figures went through the roof in 2007, with record numbers of new businesses starting up in the UK.
The north-east and West Midlands benefited the most each showing an 11 per cent increase in the figures on the previous year.