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U.K. Small Businesses Have Difficulty Getting Financing

Small businesses in the United Kingdom are encountering challenges in their ef

Small businesses in the United Kingdom are encountering challenges in their efforts to get the financing they need, according to finance survey conducted by the Federation of Small Businesses (FSB).

More-than two-fifths, or 42 percent of respondents, specified that they did not succeed when applying for a loan. The figure of 42.4 percent represents an increase from the 40.6 percent who indicated these problems in the previous quarter. Also, almost two-thirds of these participants said they didn't believe they could not afford financing.

The FSB also specified that business confidence was deteriorating, even though many firms are holding up well in the current adverse economic conditions. Roughly 50 percent of the participants stated a desire to expand their business within the next 12 months.

"It isn’t surprising that confidence fell back into negative territory as the recession entered its third quarter as growth flat-lines," John Walker, FSB national chairman stated,  according to BBC. At any rate, it is clear that "businesses want to grow and invest but they need a helping hand to do so. It is frustrating that bank finance is still difficult to get." 

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