Is Government right to warn banks over small business lending?
With banks lending less in the form of overdraft
, predictions are coming through thick and fast that more and more firms will hold onto cash longer and thereby increase the amount of late payments they make, thus putting more strain on small business through increased debtor days. If overdrafts are not made available, the incidence of business failure is likely to rise throughout the slow recovery period as less and less firms have enough cash flow to see themselves through.Is Government right to warn banks over small business lending?
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