02-10-2007
SMEs feeling effects of credit crunch
News from Simply Business - independent providers of business insurance, business finance, landlords insurance, buy-to-let mortgages & commercial mortgages
Small to medium-sized enterprises (SMEs) within the UK are increasingly feeling the effects of the recent crunch on credit, it has been claimed.
According to comments made by Matthew Knowles, a representative from the Federation of Small Businesses (FSB), as a result of the recent market difficulties, SMEs are increasingly being viewed as higher-risk locations for investing funds.
"At the moment small firms are feeling the knock-on effects of the credit crunch ever so slightly," said Mr Knowles.
"Interest rates on loans are into double digits, partly because of the high rates at the Bank of England but also because small businesses are seen, often incorrectly, as a riskier investment on the behalf of banks," he added.
In related news from the FSB, it has emerged that there is an increasing degree of concern that new retail developments are out of the price range of SMEs.
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