42% of those who applied for a loan said they were turned down
Small firms are struggling to raise the money that they need to expand, according to a survey by business leaders. The Federation of Small Businesses (FSB) found that 42% of those who applied for a loan said they were turned down.
The FSB said that while companies were weathering the recession well, confidence was low, as two thirds of those surveyed said that they thought business finance was unaffordable. About half of the 2,600 respondents wanted to expand in the coming 12 months but said that they were struggling to secure the necessary finance.
FSB chairman John Walker said
The message is clear though – businesses want to grow and invest but they need a helping hand to do so. It is frustrating that bank finance is still difficult to get. No matter what is said about demand, more than 40% of applicants have been refused in each quarter this year. This has to change if growth aspirations are to be met.
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