The capital that greases the wheels of commerce in the channel has become harder to access and its absence is undermining the ability for some companies to operate.
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According to figures from BDO Stoy Hayward companies in the technology and telco sector have seen a halving in the amount of funding they can call on and 60% revealed it was hard to get hold of new funding.
As a result just over half of those questioned revealed they had scaled back plans to raise capital this year.
Julian Frost, head of technology, media and telecoms at BDO Stoy Hayward, said that it was concerned that companies were not getting the funds they required to grow their businesses and there were “increasing levels of frustration” being sounded by firms.
“As the economic environment remains tough over the coming months, the situation is likely to become increasingly difficult and many businesses may feel that funding has dried up completely,” he said.
“Businesses have found themselves in an ironic situation as the banks, particularly those who have been nationalised, are being encouraged (if not pressurised) to lend. However there is a perception amongst businesses that obtaining bank funding has become a very protracted and expensive process,”he added.