Latest FSB survey results show decrease in trade and increase in costs for small businesses. The Federation of Small Businesses (FSB) has sent results to the Bank of England of a snap poll demonstrating the devastating impact of the credit crunch, and is calling on its Monetary Policy Committee to cut interest rates this Thursday. Figures released today from the FSB poll reveal that a majority of small businesses have seen their operating costs increase and trade reduced in the last year while most would back a reduction in interest rates by the Bank. Over 80 per cent of respondents said their costs had increased in the last year and 46 per cent had seen a decrease in trade. When asked about increases in the cost of finance such as loans and overdrafts, 40 per cent said they had seen increases in such facilities from the clearing banks. A worrying 51 per cent had seen an increase in their payment times from invoicing to full payment and this reflects the FSB’s concern that large companies are improving their cash flow on the back of their smaller suppliers.

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6 October 2008
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