Viability improving, business survey shows

A new business survey has revealed that the viability of firms is improving, with twice as many saying their fortunes are improving than those reporting a decline.

The poll by lobbying group the Forum of Private Business (FPB) discovered that 26 per cent of businesses believe their overall situation has improved in the past month, with the provision of overdrafts showing a net improvement for the first time since the survey started last November.

Commenting on the situation, chief executive of the FPB Phil Orford said: "There are signs that business confidence is returning. Significantly more business owners can see a future for their companies than are pessimistic about their chances of survival."

He stated that the upturn in banking support is the main reason for this.

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Another survey finding was that 24 per cent of firms remain concerned about cash-flow due to factors such as late payments.

The FPB recently claimed a success in its Prompt Payment campaign to tackle this issue, when several FTSE 100 companies signed pledges to ensure they pay their small company trading partners on time.

Written by Rachel Crook

Published on: May 27, 2009

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