The CBI has recently published its latest 'Access to
Finance' survey, the full text of which can be found
online at www.cbi.org.uk. 131 respondents
representing all sizes of business reported on the effects of
credit conditions over the last three months and their expectations
of the next quarter. The survey covers finance availability
and the direct and indirect costs of obtaining credit, together
with the impact this is having on CBI members. The results
highlight the worsening availability of credit and a sharp increase
in the cost of obtaining it together with the resultant impact on
investment and employment.
A sizeable proportion of respondents reported the removal or
reduction of existing credit and the majority of those who had
sought new credit found that availability had deteriorated.
Increases in the cost of credit were a concern, with a noticeable
shift to LIBOR linked pricing and an increase in arrangement
fees. A minority of participants'
