As the economic downturn continues, it is feared that unmanageable debt problems, and the lack of available credit to meet these debts, could force many companies to the wall.
One of the conditions of the multi-billion pound bailout, by the government, of the nations biggest banks, was that they should lend money to business at 2007 rates. Unfortunately for many firms, this does not seen to be happening, or it is taking too long.
The government is hoping that it can arrange funding from Europe, that will help UK firms survive the current economic meltdown. Where they will find the money from is, of course, anyone’s guess.
