Small businesses: Your Stories

UK banks have insisted that lending to small firms is continuing to rise. In its latest figures, the British Bankers' Association said total lending to small companies rose by £366m in June, up from May's £133m increase.

Small business owners contacted the BBC News website with their thoughts on the story:

I work in a small company in Leeds, exporting software to retailers. We are surviving by the skin of our teeth, working one week at a time. Employees and directors here are making many sacrifices - some are working fewer days and some have taken unpaid leave. We have been with the same bank for 7 years, always in profit.

But then recently we paid a rates bill and the cheque bounced. We were only £9 short, but the bank charged us £50. We have been offered an overdraft of £5,000 (not much considering our payroll is £100,000) but the directors would have to cover it - it would be the same if we wanted a loan. Understandably, they aren't happy putting their homes at risk. The banks have no leeway and aren't creative in helping people out.

I have run a family-owned business for the past 12 years, in Old Street Station. I have to say that I have seen my daily takings reduce by 25% over the last year, but at the same time I have noted that my running costs have increased by 5-10% on average. The local authorities do not take into consideration that the country is in recession as they increase the local business rates, but do not pass on the business rate relief as promised by our leader PM Gordon Brown himself.

I have seen my takings reduce by 25% over the last year Yogesh, London

The last time I was offered rate relief was for a laughable amount of £50. What I don't understand is why this government is so adamant on neutralising independent retailers that are struggling right now. My local authority demanded the rates and rent due for the rest of the year in advance or they would repossess my property, which I paid albeit taking extra credit on my head via my credit card.

We started our company in 2005 and made profit from 2005-2008. This year will be a struggle to make a profit, but we will survive. Not that the banks would help. That's down to us not paying ourselves fancy bonus figures when we were making good profit. We have been planning for a downturn and have the cash to survive.

Businesses should take a longer term view Malcolm, Chichester

In the good times we saved and now it will see us through the tough times. Simple. Plus we don't have all our eggs in one basket. We are also developing new products ready for the upturn. Simply put, we have always taken a long term view unlike many in the City who want jam today. The sooner we realise that a more long term approach is required the better. And that includes the government who only plan for the period that they think they can remain in office. Business should be taking a longer term view, and that includes the banks!

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