A BUSINESS support group has welcomed the Government's new Finance Fitness campaign.

But while the Forum of Private Business supports the new initiative, which will seek to improve small businesses cash flow issues, the lobby group says it remains down to banks to deliver on their pledge to increase lending, without which any assistance is pointless.

The Finance Fitness scheme, launched by Business Minister Mark Prisk, aims to help small firms assess and improve all areas of business finance.

It will see government offering SME’s advice on cash flow management, and the importance of maintaining a good credit rating for lending purposes.

While the forum says any additional support for SMEs, particularly from government, is a step in the right direction, it believes banks must also play their part by increasing lending, reducing borrowing costs, end early repayment penalties, and return to localised decision making on lending.

The forum’s senior policy adviser, Alex Jackman, said: “In an economic environment characterised by continuing credit restrictions, clear and thorough financial information is demanded by the finance and credit industry to assess risk.

“Any help for businesses to maximise their chance of getting a ‘yes’ from their bank manager is clearly welcome news for SMEs, and sends out a positive message that government understands enterprise is the key to getting the economy back on track.

“But while it remains unsustainable for lenders' decisions on credit worthiness to be made centrally and using over-centralised risk aversion criteria, business owners should be proactive in controlling their own destinies.”