Some business owners may be having to get into
credit card debt in order to stay afloat in the current economic environment, it is suggested.
According to Edward Rimmer, the UK chief executive of
Bibby Financial Services, people may also be forced to support their businesses by making use of personal savings.
He stated: "With ... increasing numbers of owners and managers being forced to ... use their own
credit cards to fund their business, it is evident that access to finance remains a real issue."
The expert went on to point out the negative impact that VAT rises could have on small firms if the government chooses to raise tax during the coalition's emergency Budget that will be announced tomorrow (June 22nd).
Meanwhile, British Chambers of Commerce director general David Frost recently suggested that the government should not use the Budget to increase the taxes that small and medium-sized enterprises need to pay.
Posted by Martin Peacock.
