Another sign that the recession might have bottomed out is a recent survey by the Forum of Private Business.
Their survey reports that confidence in the SME sector has shown a slight improvement: 26% of respondents said the viability of their business had improved in over the past month, double those who thought it had got worse.
Dissatisfaction with banks was still reported as a problem, with 18% saying that the support offered by their bank had deteriorated in the last month compared with 12% who thought it had improved. However, 8% reported that the provision of overdraft facilities by their bank had improved compared with 3% who thought it had worsened.
According to the survey, the average overdraft rate offered by banks to SMEs in May was 6.6% compared to 6.8% in April.
As for market conditions generally, the survey reports that 21% thought they were improving whereas 29% said they continue to decline.
The survey also showed that more businesses (8%) thought that lack of finance was a problem than was the gaining and retaining of new business (6%).
Gary Cousins,
Business Solicitor
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