Businesses are taking a more cautious approach to their banking arrangements according to a new report. There are also looking to reduce debt after the economic turmoil and recession of the past two years.
Figures from the CBI reveal that 68 per cent of business respondents say they don’t expect credit availability to improve in the next year, and are reviewing their company finances as a result. They are looking to have less debt with banks, and reduce reliance on business credit cards.
About a quarter are planning to increase bond issues, and 44 per cent will look to make increased us of equity finance.
In addition to these moves, businesses say they will look more at sustainability and ethics in their future business models, believing that accountability and corporate citizenship improvements will make them more attractive to both staff and customers alike.
Director Geneal of the CBI, Richard Lambert, said: “We may be at the start of a new era for businesses, in which attitudes to finance and to corporate leadership are changed for a generation by the shock of the past two years.”
Taking his words, a “more balanced, less risky pathway to growth” looks like a sensible path for the future.
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