Credit crunch hits companies
4 Aug 08
Companies are finding it harder to raise the funds they need as the impact of the credit crunch spreads into the corporate sector, a survey of finance directors at large UK companies has found
More than three-quarters of the finance directors polled by Deloitte, mostly from FTSE 350 companies, said credit was hard to obtain, up from 63 per cent in March and 48 per cent in September.
Nine out of 10 said credit was costly, compared with 72 per cent in March and 59 per cent in September. Only 1 per cent thought credit was still cheap.
Finance directors were gloomy about corporate earnings, with most saying they will grow at less than the 5 per cent expected by City analysts. Only 6 per cent said they would grow faster.