Rising borrowing costs for small businesses fuel fears of market-led recession

Banks feeling the pinch of the liquidity freeze are hiking borrowing costs for SMEs in the UK, with potentially damaging effects for the wider economy, warns the Federation of Small Businesses

There is growing concern that a market-led recession could follow the crisis in the money markets as small businesses report rising borrowing costs. Banks hit by the liquidity squeeze are being much more cautious with their reserves in case they have to use them to bail out ailing components of the wholesale market, says the Federation of Small Businesses.

Some of the FSB's members are having to pay rates of 10.75%, it says, an increase of 1% from the maximum lending rate for small companies in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here