A new government scheme to boost bank lending to small and medium sized enterprises has had a mixed reception from financial insiders since it was announced by Chancellor George Osborne during the annual budget last week.
The £20bn National Loan Guarantee Scheme (NLGS), commonly referred to in the press as ‘credit easing’, is a government subsidy for borrowing that can be utilised by SME’s with a turnover of up to £50m. An initial resource of £5bn of loans will be made available at an...
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The days of the bank loan as the first port of call for small businesses in need of funding may be coming to an end, with many SME owners looking to alternative sources such as Invoice Finance in 2012.
In a recent study by business deals website Huddlebuy, almost two thirds of small business owners stated that they did not trust the banks to lend. This figure rose sharply among younger entrepreneurs, with almost three quarters of 18-34 year olds polled looking at alternative funding options i...
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SME funding is expected to be hit hard over the coming year as overall bank lending contracts for the first time since 2009. According to research by the Ernst & Young ITEM Club, commercial real estate and personal customers who fall outside of standard credit terms will also suffer as total bank loans in the UK contract by an expected 2.2%, after expanding by an estimated 4.3% in 2011.
On the other hand, factoring companies and alternative corporate funding vehicles are likely to benef...
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Almost 90 per cent of business owners believe that the government should be doing more to promote growth, according to a recent poll.
In a study conducted by Iris Accounting and Business Solutions, 150 companies were asked for their thoughts on the current economic climate and how it impacts on SME’s. Around 30 per cent thought that reducing administrative burdens would encourage growth, while just over a quarter (27 per cent) felt that tax breaks would provide the most effective incentive ...
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65 per cent of small business owners believe that they can no longer rely on banks to finance their enterprises, according to a new poll.
Despite aggressive government initiatives and attempts to promote bank lending as an ideal solution for smaller businesses, almost two thirds of the 1,000 business owners surveyed stated that they will be seeking alternative funding sources in 2012. These alternatives are likely to include invoice finance, factoring and invoice discounting.
The poll also...
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