31 December 2008
Credit card charges and interest rates must be capped in order to support small businesses though the economic downturn.
This is the view of the Federation of Small Businesses (FSB), which claims a cap would reduce business borrowing costs while also giving consumers a boost.
Research from the organisation shows that more than 23% of small business owners use their company credit card to finance their firm.
Furthermore, over 26% use their personal credit card to meet company expenses, the survey reveals.
FSB National Chairman John Wright said: "With base rates at 2% and falling, the chancellor and the governor of the Bank of England must look into capping interest rates charged on credit cards."
He insisted small businesses are essential to the UK economy and have the potential to lead the country out of the recession.
Research carried out recently by AXA shows that over 3.7 million people across the UK think their credit card debts are too much to cope with.
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