Speciality Food Magazine

The organisation is also concerned that high street banks are beginning to reduce credit facilities and increase overdraft charges at a time when small firms are most in need. "It appears that, just as the funding requirements of small businesses are increasing because of the economic downturn, banks are cutting back on both the level of facilities they provide and the services they offer," says the FPB's chairman, Noel Guilford. "Accessing finance in order to maintain a healthy cash flow is always a key issue for small firms – now it has become a matter necessary for survival as much as growth."

With additional bank charges and tighter lending facilities, small businesses are increasingly struggling to access the finance they need. The FPB is advising to review business practices to make the most of the cash that is available.