'More credit needed' to help struggling sales enterprises

Businesses that are struggling during the recession need better access to credit, according to an industry expert.

David Molian, a lecturer in entrepreneurship at the Cranfield School of Management, said that difficulties faced by businesses with sales jobs are a sign that there is not enough credit in the market.

He added: "I think those businesses which are now going under have been fighting to protect every last penny and now there is no more cash left. The government should do everything they can to get credit into the market."

Mr Molian also warned people in sales jobs that the recession is not necessarily over and urged companies not to "over trade" if they see a pick-up in their order books as they still need to finance their debtors.

His comments follow research by accountancy firms UHY Hacker Young and Trowers & Hamlins LLP which revealed the number of firms facing financial difficulties had increased.

They highlighted that the number of businesses leaving the junior stock market AIM had jumped sharply in the three months to September.

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By Paul Goatman and John Oak

Filed: 14-10-2009