SMEs on the up but credit is still tight

The economy is improving, say London’s small-and-medium-sized firms, but obtaining credit to fund expansion remains tough.

That’s according to a survey for the Evening Standard by Western Union Business Solutions, which shows nearly half of such firms feel optimistic about the economy, compared with 39% at the end of last year. Western Union’s International Trade Monitor also shows two thirds of London’s importers and exporters feel confident about international trade conditions.

However, only one in five of London’s SMEs applied for credit in the last quarter and the vast majority, 83%, found no change in the availability of credit from banks over the past year.

Neil Graham at Western Union Business Solutions said: “Despite the boost in confidence London’s SMEs are still struggling. The global economic outlook remains uncertain, which means liquidity continues to be a big problem.”