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A third of small businesses in the UK are struggling to get affordable credit from banks, according to a survey from the Federation of Small Businesses.

The figures come as the banks and the government both pledge to do all they can to improve credit conditions for UK small businesses. The FSB is meeting with business secretary Lord Mandelson at the Small Business Finance Forum and urge the government to put pressure on the banks to end what Mandelson called "scrooge-like tactics". 



FSB national chairman John Wright says: "Despite the government's £500bn bailout, the banks do not seem to be lending to small businesses." 



The survey also found that almost two thirds of the 5,000 FSB members surveyed had seen a downturn in business over the past two months and 40% reported an increase in late payments for services and supplies. As a result, almost 40% were considering closing down, the study found. 



Wright adds: "These figures show that with nowhere to turn, small businesses are having to cut jobs and consider closing down. This would be a disaster for millions of employees, as well as the economy as a whole."

One of the problems may be that the businesses have not been receiving the right financial advice. If you a small businessperson who is struggling, talk to a professional adviser – there are a raft of options open to you. To get access to the banks and the Government’s help, and to make it work for you and your small business, you need adviser aid.

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