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Entrepreneurs hit by credit squeeze

Small business owners and entrepreneurs are feeling the effects of the recent credit squeeze on their businesses as the High Street banks crack down on lending limits and overdraft levels.

Many start-up businesses have recently had loans turned down as the banks tighten lending criteria where only a few weeks ago the same applications would have been approved.

Additionally, business owners are being turned down for personal loans and in some cases are seeing their credit card limits reduced, a vital source of funds for many small business owners who often need to put in their own cash to keep their business afloat.

Barclays Bank have today confirmed they have cut credit card limits for more than 500,000 of their personal customers as part of a general review, and it is expected that the other bigger banks will be making similar statements over the next few days.

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Post Date: September 24th, 2007