The UK credit crunch in the wake of the sub-prime mortgage loans crisis in the US and the run on the Northern Rock bank has made it more difficult for small businesses to raise loans the Federation for Small Business has reported.
Even if businesses manage to get a loan, it is more expensive with interest rates of 10% to 11% so this is 4 to 5% more than base rates at the moment.
If you need to raise finance at the moment, or even renew an existing overdraft then you need to make sure that you prepare properly for your meeting with the bank manager.
Talk to your accountant, update your business plan, make sure that your forecasts are realistic and credible.
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