Businesses in Northern Ireland and the rest of the UK are beginning to feel less pressure from the downturn, according to the Confederation of British Industry (CBI), which has stated that the grip of the credit crunch is relaxing.

In the CBI's latest Access to Finance Survey, businesses admitted conditions were getting better, with a net 20 per cent saying new lending has deteriorated compared to the 36 per cent who held a similar view in March.

According to the CBI, the easing of conditions for new lines of credit is looking positive and is expected to improve as only a net seven per cent feel new credit supply over the next three months will fall.

"Credit availability is still a concern, but the severity of the situation is easing compared with a few months ago," said CBI chief economic adviser Ian McCafferty.

"Big companies who were encountering serious problems getting credit at the start of the year are still finding it difficult, but they expect that the supply of existing credit will get slightly easier over the next few months."

One way of helping businesses through the downturn is limiting the flow of new regulations regarding employment, according to the Forum of Private Business.

Drew Nesbitt, a member of the commercial department at Wilson Nesbitt Solicitors, commented that "the increase in availability of credit will lead to an increase in opportunities.

"Businesses should position themselves within their market to ensure they can take advantage of any improvement in the market place."
Contact us for legal advice