Thriving local businesses struggle to access credit

During the debate on the Automotive Industry yesterday, Anne Main secured an agreement from Enterprise and Treasury Minister Ian Pearson that he would look into the case of a thriving local business, AHR International Ltd.

During the debate on the Automotive Industry yesterday, Anne Main, MP for St Albans, secured an agreement from Enterprise and Treasury Minister Ian Pearson that he would look into the case of a thriving local business, AHR International Ltd, a specialist distributor of bearings, which is discovering that credit and loans are being severely restricted by local banks.

Anne said:

"When I visited the local company last week, I was interested to hear that the business is thriving and looking to expand despite the economic downturn. This business is going from strength to strength and, indeed, even in these difficult economic times is keen to take on additional staff, which is surely welcome at a time when St Albans has experienced a 75% increase in joblessness. Enterprising businesses like this one should not be having problems accessing credit at this time, and yet they tell me they are unable to get hold of the funding they need to expand operations and create new jobs. I know they are not alone in discovering that accessing finance, despite the Government's rhetoric, is extremely difficult. Our businesses deserve a fairer deal.

I raised this matter with the Minister and I am pleased that he assured me his department will now look into the situation of this St Albans business. We certainly do not want to see viable, productive businesses like these being denied adequate finance by the banks. Growing small and medium businesses will be crucial to local prosperity. After all, the Government has promised more help to fund small businesses and this is a prime example of where the delivery is certainly not happening on the ground.""