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'Credit-shy banks are strangling businesses'
A SUCCESSFUL businessmen warned yesterday that his Peterborough firm might fall victim to the banks' growing refusal to lend cash.
A SUCCESSFUL businessmen warned yesterday that his Peterborough firm might fall victim to the banks' growing refusal to lend cash.Fashion car accessories enterprise owner Lee Shakespeare told of his plight to a high-profile gathering of city leaders held to discuss the credit crunch financial squeeze, in which banks have substantially tightened their lending criteria.
Mr Shakespeare, who runs Rimz-Inc, in Bretton, said: "We are not turning over as much as anticipated, particularly from October to December.
"We need to borrow money to keep us going over the next six months. But the bank has said because we are not breaking even, they won't lend us money.
"We have seven multiple-page magazine features due in the next month and we would hope to get positive response from these.
However, if we do not get money to tie us over, we will not be able to reap the benefit through advertising."
Lee, who has seen two of his four members of staff leave over the last few weeks, also claimed if the firm did not secure funding, the business may close within weeks.
His warning to delegates at the Credit Crunch Conference, at the Bull Hotel, in Peterborough, comes after a four month spell in which more than 3,000 job cuts have been announced by a number of leading city firms.
These include 500 at catalogue giant Freemans, which is to pull out of the city, and 450 by engineering firm Perkins and 400 by Peterborough City Council.
Financial problems, especially credit, were the focal point for the conference, which was attended by about 100 business leaders.
Speaker Michael Self, regional organiser for the Federation of Small Business, said: "Cash flow is everything – small and viable businesses are being strangled by lack of credit."
Roger Goetze, from Business Link East, said there was "enormous support" for businesses that needed help during the recession.
Deputy chief executive of Peterborough City Council Ben Ticehurst said the local authority had put together a number of short-term measures to help firms, from actively promoting small business relief, quicker payment of invoices and an improved contract tendering set-up.
Afterwards, Peterborough MP Stewart Jackson, who organised the conference, said: "There was some good feedback from delegates. There was a good mix of practical advice and focus on longer-term problems. We hope to repeat the event in the not-too-distant future."
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Friday 25 May 2012
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