Bank charges put the squeeze on small businesses

The FPB, which represents thousands of small businesses across the UK, has learned banks are imposing a raft of charges, increasing interest rates and demanding personal guarantees as preconditions for lending to small businesses. "It is becoming clear that steep interest rates, a range of charges and demands for additional security are combining to create a significant cost barrier preventing viable yet struggling firms from securing the funding they need."," says FPB spokesman Phil McCabe. FPB research reveals the cost of finance is a major issue for 63% of respondents. Almost one i...