Corporate banking sector could see 'businesses without confidence'

The corporate banking sector may see a dip in firms that want to secure a loan for expansion plans.

According to a new survey by the Federation of Small Businesses (FSB), over 50 per cent of small organisations will not introduce new services or products or hire new employees in the near future.

Over 40 per cent of respondents want the corporate banking system to be reformed. Indeed, while the current financial climate has unnerved many companies, some may think it is pointless to consider expanding because of an unwillingness of lenders to grant funding.

A recent poll by Travelex Global Business Payments found 38 per cent of the firms it questioned thought the Conservatives would be the best party to encourage banks to lend again.

’Confidence is vital for small businesses and we know that they want to take on new staff and grow their business, but are still cautious about whether the economy is strong enough to do so,’ national chairman of the FSB John Walker stated.ADNFCR-2318-ID-19769817-ADNFCR