Firms 'must have access to finance' - commercial mortgages

19 February 2009

It is important that businesses have access to various forms of finance in order to survive the economic downturn, it has been claimed.

Stephen Sklaroff, director general of the Finance & Leasing Association, said that small and medium-sized enterprises (SMEs) in particular need to be offered support.

He noted: "SMEs access funding from a wide range of different sources," which could include commercial mortgages, business loans or overdrafts.

Mr Sklaroff added that many companies are having to rely on asset finance deals in order to acquire new equipment such as photocopiers or vans.

And he called upon the government to ensure that its support offered to small firms in the recession is "not restricted to traditional bank loans".

Recently, ministers unveiled the Enterprise Finance Guarantee, under which the government will back lending to viable firms to ensure they can access the working capital and investment they require to carry on trading.