Viable firms are being put in jeopardy as they cannot access working capital, a new study has found.
It might interest business insurance customers to know that research conducted by Ipsos Mori on behalf of the Confederation of British Industry (CBI) reveals that half of firms have been hit by a fall in working capital.
The study also reveals that around 75 per cent expect the situation to get worse.
Richard Lambert, CBI director-general, said: "This survey presents a disturbing picture of how the turbulence in our financial system has spread to the whole economy, and it lends weight to our call for targeted fiscal and policy measures."
Although banks are facing tough times themselves, the government must take steps to ensure that the next six months are less difficult than they would otherwise be, he added.
Last week, David Frost, director general of the British Chambers of Commerce, called for tax cuts to boost business.
