Cost of credit

The latest survey by the EEF suggests that UK manufacturers are seeing the cost of borrowing rise despite easing credit conditions.

According to the survey, 45 per cent of companies experienced a significant to moderate increase in the cost of finance in the past two months, a rise of more than 37 per cent in the first quarter.

During the same period, firms that saw a decline in the availability of new avenues of borrowing fell from 49 per cent to 42 per cent.

Around 39 per cent of companies reported an increase in the fees on existing borrowing, an increase of 27 per cent from 2008.

In addition, the survey revealed difficulties in gaining credit insurance, with around 70 per cent of companies saying they had access to credit insurance either withdrawn or reduced in the past two months.