Indicators
UK Economy’s Latest Headache is Rising Business Borrowing Costs
- Small businesses worry about credit costs and availability
- Higher interest rates starting to weigh on business sentiment
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British businesses are already hurting from soaring energy costs and rampant inflation. Now, higher borrowing costs are adding to the pain and increasing the risk of a recession.
About half of small and medium-sized businesses said the pricing and availability of loans was “poor” in the three months through September, according to a poll by the Federation of Small Businesses. That’s the lowest in seven years and comes as one business warns that the cost of credit has more than doubled in just over 12 months.