Monday, November 26, 2007

Credit crunch negative impact on small and medium businesses

According to a latest report from CBI, more than one third of small and medium size companies are worried that current credit crunch will dry up the funding for their businesses. According to the report, 12 percent of companies have already witnessed the funds being chocked and another 22 percent expecting some problems over the next three months and another 33 percent companies expecting its effect in the next six to 12 months.


More severe lending conditions and higher rate of borrowing costs were seen as the signs of worsening. More serious doubts over new finance being refused and previous credit lines being closed off were less frequently cited.


And according to another survey that was carried out on 1860 UK working adults, two third of working adults have the view that credit crunch will have negative impact on Briton economy and 12 percent of them have the view that downturn due to credit crunch would be significant.

No comments: