Small businesses could get credit boost

10/08/2010

Small businesses could receive a credit boost through a new scheme headed by the bosses of six of the UK's biggest banks.

Led by Stephen Green, chairman of HSBC, who announced in May he would be stepping down from his role at the bank, the new taskforce will assess credit demand from businesses to help aid recovery it was revealed on Monday August 9th.

In a bid to improve private sector recovery, the group will identify areas concerning small and medium-sized businesses and aim to provide suitable finance and new lending for firms.

However, the move could be hindered by small businesses trying to cut back on the amount of debt they hold, chief executive of the British Banker's Association (BBA), Angela Knight, told Radio 4's Today programme.

It is thought the taskforce will also consider possible improvements that could be made to government support schemes for businesses, like the enterprise finance guarantee scheme, reported the Independent.

Posted by Emma Noble