ICAS urges Cable to throw SMEs a lifeline
Scottish institute wants business secretary to force banks to open up access to reasonable and affordable short and longer-term funding
ICAS has called on Vince Cable to avoid any further damage to SMEs in the
measures taken to reduce the budget deficit, by reducing regulation and
increasing funding.
In a letter to the business secretary, ICAS urged the government to focus on
encouraging SMEs.
“Specifically, the Institute asks the government to put pressure on banks to
open up access to reasonable and affordable short and longer-term funding,” the
Institute said.
ICAS said that the current lending system is particularly damaging for
businesses in early stage growth and those that have hit a temporary rough patch
due to the recession.
David Wood, head of technical policy at ICAS, said: “The majority of SMEs
still find ‘traditional’ access to bank credit extremely difficult. Cash flow is
the life blood of business, more so in the SME sector where any problems with
cash flow bite quickly and can have dire consequences for both the employer and
their employees.
“Key to this is the banking community who need to realise the significant and
important part SMEs play in encouraging economic growth and job creation.”
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