'Sound' small firms at risk
Updated on 10 November 2008
Business leaders are to warn the Government that many "sound" small firms could go bust by Christmas as they struggle to cope with the financial downturn.
Concerns about the availability of credit will be expressed during the first meeting of the new Small Business Finance Forum, set up by ministers to address the financial issues affecting smaller companies.
David Frost, director-general of the British Chambers of Commerce said ahead of the meeting: "The BCC has serious concerns about the availability of credit and the tightening of credit conditions for small businesses.
"If things carry on like this, many sound UK businesses will be bust by Christmas.
"We have received numerous calls from small businesses who are trying to manage cashflow, but credit such as overdrafts are being withdrawn indiscriminately and terms changed without notice.
"The Government has just spent billions bailing the banks out using taxpayers' money. Surely it's not too much for small businesses to expect the right financial support.
"It would be a disaster if we lost hard-working businesses and their employees during this downturn."
These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.
