Federation of Small Businesses in plea to UK banks
The Federation of Small Businesses (FSB) has today called upon UK banks to "return to their normal lending criteria and start playing their role as lenders with a large dose of modesty". This is the New Year message coming out of the business arena in the UK with UK banks still unwilling, and in some cases unable, to return to the lending criteria which was in place before the credit crunch.
There is no doubt, and there is statistical evidence to prove so, that perfectly healthy businesses are struggling to survive purely and simply because of the need for short-term liquidity. Many supplies are "pulling in their horns" and demanding more collateral and shorter payment terms, which is then having a knock-on effect to many businesses in the UK. The answer to the problem is simple, a significant increase in short-term liquidity in the business arena would allow many businesses to get back in shape and refocused for the future.
However, many banks in the UK have been burnt in the recent past and are keen to ensure that the same mistakes are not made again. Whether banks have now gone overcautious is open to debate, but there is no doubt that more liquidity is needed not only in the business arena but also in the personal finance arena.
Share this..
Related stories
Why is investment the life blood of the economy?
While stock markets have been very volatile to say the least over the last 18 months it is worth remembering that investment into the UK economy and UK companies is the lifeblood of the future of the country. The ability and necessity for companies to grow and individuals to receive a return on their investment is the backbone of any economy and the UK is no different. Any recession and any boom t...
Read MoreIs credit more available in the corporate market?
A survey by the Bank of England seems to suggest that credit in the UK corporate market is now more readily accessible than it has been for some time. The bank has confirmed that UK financial institutions have seen an increase in the availability of loans available for customers in the business arena although on the downside it would appear that growth in liquidity was lower than expected. Whil...
Read MoreGoldman Sachs plays down bonus payments
US financial giant Goldman Sachs has today played down bonus payments for employees with many people suggesting they have been under stated specifically to keep the US government happy. The shift in strategy regarding bonuses has benefited the bottom line although the company is still on track to put aside around $20 billion for bonuses this year. So what next for the US financial sector?
<...
Is Marks & Spencer in line for a troubled Christmas?
News of Marks & Spencer's 20% off day has caught the market by surprise coming so far ahead of the vital Christmas period. This has caused concern with many analysts suggesting that trading could be worse than expected with such sharp reductions available so far away from the Christmas period. If shoppers are receiving 20% discounts today, what will expect tomorrow, and what will they expect next...
Read MoreVirgin Trains hit by industrial action
In a sign of the times it has been revealed that railway ticket office staff at Virgin Trains will take industrial action in the New Year over changes to working practices. Members of the Transport Salaried Staffs Association (TSSA) have voted for a number of walkouts in the New Year with the union claiming that Virgin Trains is looking to reduce customer services in railway stations in favour of...
Read More