Banks still offering a raw deal
Jun 15 2010
Banks still not delivering, say SMEs
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Despite a modest improvement in the economy, small businesses are still being refused bank loans.
More than one-third (34 per cent) of owner-managers have been declined bank finance in the past three months, according to new research from business software provider Sage UK.
Of the 1,500 SMEs surveyed, 58 per cent did not feel they were given an attractive rate for their loan.
Robin Moore, product manager at Sage, says: ‘The decision on a loan can make or break a firm, so it is a concern that so many SMEs are being declined.’
'It might feel like information overload, but by conducting and presenting research that proves why you need the funding, explains how much finance you need and how are you going to pay it back, you can address any concerns the bank may have before they arise.'
Another survey from investment group Investec finds that only 6 per cent of small businesses expect lending conditions to improve in the next 12 months.
Comment by Mandy D\\\'Arcy-Evans
Tuesday 15th June 2010It is certainly true that restrictions on bank lending are having an impact on the growth and even survival of small business. It is now all bad news though - there is a new service now available in the UK that allows SMEs in a business to business environment to obtain short term working capital by selling individual invoices - allowing them to meet their cashflow demands. You can see more here http://interfacefinancial.com/cashflow/
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