Improved corporate fiduciary 'to create stronger businesses'

Better corporate fiduciary might have the positive side effect of making small businesses stronger, as one observer claims stricter lending criteria is leading to a "survival of the fittest process".

John De Groot, chairman of Success Strategy Limited, states flourishing enterprises arise from individuals overcoming challenges and hardships, arguing this will result in a more resilient commercial sector.

Harsher borrowing conditions may be one side effect of improved corporate fiduciary, as banks become more aware of the importance of secure lending and the dangers associated with excessive financial risk-taking.

The most recent credit conditions survey, published by EEF the manufacturers’ organisation, reveals the supply of money and new access lines have improved moderately, but the benefits are enjoyed mainly by medium and large companies.

However, the cost of taking out a new advance has risen for 37 per cent of companies surveyed, up from 32 per cent in quarter two.  ADNFCR-2318-ID-800113716-ADNFCR