Small business lending to become an even bigger problem?

Banks have threatened to raise the cost of borrowing for small businesses. Given the number of complaints we hear that it’s too expensive already, that’s less than ideal.

What do you do when your customers complain that the cost of your product is too high? Presumably, the answer isn’t ‘raise prices even more’. But according to a report by the Bank of England, UK banks are planning to do exactly that, raising the cost of borrowing for small businesses over the next three months or so, despite the fact that SMEs have spent the last few years vociferously complaining that they can’t afford to borrow in the first place. Time for the Government to start cracking the whip a bit harder?

Read full article: http://www.managementtoday.co.uk/news/1078121/small-business-lending-become-even-bigger-problem/

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