News Article - 18 February 2009
Category:

The survival of business growth within the UK's small and medium-sized enterprise (SME) sector depends on unrestricted government loans, in the opinion of one sector commentator.

Stephen Sklaroff, director general of the Finance and Leasing Association, said the economic downturn meant that small businesses in particular were relying more heavily on asset finance deals to obtain new equipment.

He added: "A third of business loans are through asset finance, so it is vital that the government's effort to support lending in the economy is not restricted to traditional bank loans."

Recent reports have suggested that UK banks have leant only a fraction of the amount provided to them for the purpose of lending to smaller businesses.

Furthermore, the total figure is still not close to the amount the government earmarked for small firms that have been struggling to stay afloat.

And according to the Finance and Leasing Association, it is such small companies in London that have been hit the hardest by the economic downturn.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »