Higher cost of money to hurt SMEs 4:29pm 11.06.08

Next quarter will be a painful one according to a survey conducted by Dun & Bradstreet on 800 SME managers. More than two-thirds of those surveyed say the credit crunch will have a negative impact on their business due to higher interest rates.

The rising cost of fuel was also a concern, with 82 percent indicating fuel costs will also have a negative impact. And employment will also be a victim of the downturn with only 10 percent saying they expect to hire someone, but 20 percent indicating they were likely to reduce staff.
 
CEO of Dun & Bradstreet, Christine Christian, said the survey showed the business community anticipating a rapid slowdown due to tightening credit, rising fuel costs, a decline in consumer spending and inflation. "Any further increase in the cost of credit will most likely add pressure to a number of businesses, with SMEs likely to feel the greatest burden."