The government must do more to ensure that small firms can access funding during the economic downturn, according to one industry body.
It might interest business insurance customers to know that David Frost, director-general of the British Chambers of Commerce (BBC), believes that if things carry on as they are, many companies face disaster.
He said: "We have received numerous calls from small businesses who are trying to manage cashflow, but credit such as overdrafts are being withdrawn indiscriminately and terms changed without notice."
This could lead to "many sound UK businesses" going bust before Christmas, he warned.
Following the government-backed bail-out of UK banks, small firms should now be given financial support, he stated.
If firms go out of business because of a lack of funding, then it will be a "disaster", Mr Frost added.
Yesterday, the Trades Union Congress called for a 1.5 per cent cut in interest rates, stating that it would give small companies a much needed boost.
