The impact of the banking crisis on the availability of credit to SME’s

摘要

This paper examines the impact the current banking crisis is having on the availability of udvital credit to small and medium enterprises. Such a study is important in order to uddetermine where the credit chain is broken and how it can be fixed. The literature review udis split into three sections which examine the three theoretical frameworks; Quantitative udeasing, Lending plan strategies and Ratio analysis, highlight the advantages and uddisadvantages. It concludes by exploring the governments’ new proposal of a pillar udbanking system. ud udInterviews carried out with five local business owners further delve into the issues which udsurround the availability of credit. From here it shows first hand how these small udbusinesses are dealing with the lack of credit on a daily basis and how they have adjusted udtheir business accordingly.