Firms 'using credit cards to keep going'

Almost two out of three businesses seeking bank finance in the past year have been turned down, often forcing them to fund their firms with credit cards.

A study by the Institute of Directors, published today, showed one in four firms had tried to access finance from their banks, but almost 60 per cent of them had their application rejected.

The survey of more than 1,000 company directors contradicted claims that lending demand was being met by the banks, said the institute.

Hide Ad
Hide Ad

It said of equal concern was that promised Government support in the form of the Enterprise Finance Guarantee was not getting through.

IoD director general Miles Templeman said: "It seems that more businesses are turning to forms of unsecured finance, such as credit cards to get them through their short term spending needs."

Related topics: