MORE than a third of Scottish businesses have reported a rise in their cost of borrowing since the credit crunch began, according to a study published today.
In Scotland, 37 per cent of companies reported a rise in the cost of credit, compared to 25.3 per cent in the UK as a whole.
A further 8 per cent of Scottish firms said their banks had been indicated the cost of borrowing would rise again in the c
urrent financial year.
Around the UK, 15 per cent of firms had been told to expect further rises, indicating banks in Scotland may have already taken more action to rein in lending, according to Siemens Financial Services, which published today's report.
However, the survey suggests the credit crunch is not hitting all firms in Scotland, with 27.5 per cent of respondents stating the crisis in the world financial markets would have "no effect" or only a "marginal effect" on their businesses.
The figure was higher than that for the UK as a whole, which stood at 22.5 per cent.
Across the UK, larger firms appeared to have been hit harder by the credit squeeze, with 28.2 per cent of companies with more than 2,000 workers reporting a rise in the cost of borrowing, compared with 22.8 per cent of firms with between 50 and 199 employees.
In the UK financial services sector, 31 per cent of companies reported a rise in the cost of credit, while only 8.3 per cent of pharmaceutical firms reported a similar increase.
The survey of 739 companies also found increases in the cost of borrowing varied across other sectors, with many companies working in information technology, telecommunications, manufacturing and hi-tech engineering having reported rising premiums.
Looking ahead, 28.2 per cent of Scottish companies said they expected the cost of credit for UK companies as a whole to increase this year, lower than the 38.3 per cent across the UK.
Derek Ryan, sales director of Siemens Financial Services, said: "Scotland's economy is considered to be more open to the world economy than the English or Welsh economies, with exports playing a much higher level of importance.
"The construction sector in Scotland would have been hit by the tightening of credit.
"The most efficient businesses are those that treat cash as a scarce commodity even when it is not."
The full article contains 409 words and appears in The Scotsman newspaper.
