ACCESS to credit remains a “headache” for smaller firms, even though demand for their goods is improving both in home markets and abroad, says new research today.
Employers’ organisation the CBI said production in small and medium-sized enterprises (SMEs) had stabilised, and the relative weakness of sterling had led to a better than expected rise in exports.
A survey of more than 400 manufacturers showed over a third had seen an increase in orders in the three months to April.
But increasing raw material prices were squeezing profits and access to credit continued to be a “challenge”, said the CBI.
Its SME council chairman, Russel Griggs, said: “With demand expected to grow in the coming months, manufacturers are thinking about taking on extra staff.
“However, firms are experiencing a sharp rise in raw material costs which is squeezing profit margins. It is also still a concern that access to credit remains a headache for some firms.”
