Creative companies struggle to 'access business accounts'

Businesses operating in the creative sector often struggle to access finance.

Companies in publishing and other creative industries are struggling to access business accounts and other financial products.

So claims Helen Alexander, president of the Confederation of British Industry, who states such businesses also face problems with managing their tax burden.

In a speech made to the Worshipful Company of Stationers and Newspaper Makers, Ms Alexander claims that while the National Endowment for Science, Technology and the Arts reports such companies will contribute up to £85 billion to the economy by 2013, "far greater recognition of the creative industries and their significance" is needed.

And this could come in the form of business bank accounts, as medium-sized organisations "have found access to finance particularly hard to come by".

She adds that as the music, book and film industries are typically seen as risky investments, banks are often unwilling to issue them with credit.

However, businesses which can secure finance may soon be able to use contactless-payment technology. Barclays recently announced its business customers are to be issued with debit cards which allow for low-value goods and services to be paid for by swiping the plastic over a reader.

By Nate Sawyer