The government must make sure that businesses do not become overly-reliant on banks for their lending requirements in the wake of the recession, a new report has stated.
According to a review conducted by the Confederation of British Industry (CBI), it is vital that small and medium-sized enterprises (SMEs) have a wider source of financing options open to them in the present climate.
With this in mind, the group - which represents more than 240,000 companies - has urged the Conservative-Liberal democrat alliance to do more to support the country's process of recovery by opening up other avenues to finance.
John Cridland, director-general of the CBI, said that for too long firms have "relied heavily on banks for most of their credit", adding that unless this situation is rectified sooner rather than later, "other countries will steal a march on the UK".
"Growing firms also need patient capital, with a longer investment return horizon," he noted.
By Claire Archer
