A new scheme that could help limited company contractors
requiring business loans for new equipment or vehicles is up and running.
The Funding for Lending scheme, which was announced in June, will offer cut-price loans to banks and building societies, who will then be expected to make the money available through loans to small businesses.
While the scheme has met with criticism from some quarters, the CBI believes it will deliver a timely boost to the UK's smallest companies.
The group's director general, John Cridland, notes that rising borrowing costs have held back the growth ambitions of many small and medium-sized firms.
He says: "This scheme should support banks to make finance more affordable to businesses and consumers, while also encouraging banks to lend more."
The Funding for Lending Scheme is expected to eventually replace the National Loan Guarantee Scheme because it is bigger and open to a broader range of firms.