FSB: Govt must ensure small firms can access finance

Date: 07/11/2011

Businesses looking to purchase new 0800 numbers and expand their operations may agree that the government needs to take "bold" steps to develop credit easing.

The Federation of Small Businesses (FSB) claimed finance must be affordable, available to less-sizable companies and separate from banks.

It stated firms are still not getting the money they require, despite banks joining the Project Merlin initiative in a bid to meet lending targets.

Research conducted by the FSB previously revealed 40 per cent of businesses have monetary concerns because they have not received the cash they applied for.

National chairman of the group John Walker said: "Analysis of small businesses lending shows that it's the smallest of firms that are getting the worse deal - they're paying more and they're more likely to be refused."

Entrepreneur, business expert and founder of Serious Brands Alex Pratt recently told companies not to give up if their financial application is rejected, saying they should exhaust every possible avenue.