Small companies’ access to finance is the issue which business secretary Vince Cable worries about the most, he has revealed.
Speaking at Innovate UK in London, Cable said: “We’re dealing with the legacy of a terrible financial crisis and it will take a while to get lending flowing to SMEs. This is the one subject which keeps me awake at night.”
The business secretary added that “banks aren’t doing what they should be doing – lending to SMEs” despite government initiatives like Funding for Lending which he admitted “frankly isn’t yet working the way it should”.
Saying that ministers are trying to get capital flowing to small firms, Cable stressed: “We realise there’s a terrible problem but we’re doing all we can.”
WestWon’s Jeremy Hall commented, ” Access to funding and protecting cash flow remains a major issue for many SMEs today. That’s why many more businesses are actively looking at leasing as a positive way to invest and grow.”