61% of firms stated that the late payment of invoices is affecting their cash-flow position.
Over half of businesses seeking a bank loan either failed to secure one or did not receive a loan that met their actual financial needs.Of the businesses that had an overdraft (60% of the sample), 30% stated that they had seen an increase in the fees associated with that overdraft facility over the last 6 months.
Commenting, David Frost, Director General of the BCC, said:"A lot more needs to be done to raise awareness of these schemes. It is business that will drive the UK out of recession and it is vital that banks support companies through what is an extraordinarily difficult time.“The government needs to address the growing pressures on cash-flow within businesses, even beyond relationships with banks. This means scrapping the planned rise in National Insurance Contributions, calling time on harmful extra regulation and freezing the national minimum wage.”