More 'could be done' to help SMEs

30/07/2010

Banks are not doing enough to help small and medium-sized enterprises (SMEs) which have differing cash-flow issues, and far more could be done to help them, according to BrightSet Media.

Recently, the Department for Business, Innovation and Skills launched a consultation paper looking at ways in which an industry-led recovery could be encouraged by addressing the problems businesses face accessing finance.

Mario Lafond, director at BrightSet Media, said the measures set out by the government needed to be auctioned on the ground in order for it to "filter down" to real SMEs.

"The banks are saying they are giving a lot, but it seems to be not helping a lot of companies with different cash flow issues. On one hand it might be being instigated, but far more could be done."

Small firms are struggling to access finance, according to a recent survey from the Forum of Private Business.

Some SMEs reported reductions or more than 50 per cent in their overdraft facilities, with some having them cancelled altogether.

Posted by Dan Morris