Small and medium businesses are taking steps to reduce their debt, with new research finding 49 percent of small business borrowers plan to reduce or pay off their debt in the next 12 months.
The Business Financial Services Monitor conducted by DBM Consultants of more than 4,000 small and medium businesses across the country, found that the majority of businesses were taking steps to reduce their debt in the downturn, starting with the amount they borrow from lenders.
DBM Consultants Managing Director, Dhruba Gupta said that the results are consistent with expectations of a shrinking debt market in the small business sector, driven by “lower credit demand and more conservative lending practises.”
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