Despite interest rates being cut to the lowest they have been for 315 years resellers are still struggling to get their hands on credit.
According to a survey of its members, which include dealers, the Forum of Private Business (FPB) has discovered that in the last three months of last year those small businesses trying to get credit struggled.
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There have been criticisms of the banks for not passing on interest rate cuts to customers and continuing to resist government calls to return lending activity to 2007 levels.
Just shy of half of those SMEs asked by the FPB had applied for credit and been partially or completely rejected by the banks. In addition 40% of those queried said the cost of borrowing had gone up in the last six months.
“Banks have not passed on, in full, the Bank of England’s previous three cuts to the cost of borrowing because many clients have fixed rate rather than variable rate arrangements,” said Phil Orford, FPB chief executive.
Getting hold of credit has been a constant bug bear for the channel as the banks have become more reluctant to provide finance.