New figures from the Bank of England released in June have shown that, despite the Government’s efforts to encourage bank lending through the Funding For Lending Scheme, lending to businesses fell by £300 million in the first three months of 2013.
The Bank and HM Treasury announced an extension to the FLS on 24 April 2013. This extends the scheme by one year to allow participants to borrow from the FLS until January 2015, with incentives to boost bank lending skewed towards small and medium sized enterprises (SMEs). “This is a big boost for the small and medium sized businesses that are at the heart of the British economy,” said Chancellor George Osborne.
In my opinion, it remains to be seen whether this will stimulate further lending to SMEs over the next 12 months. In these challenging times, confidence has been the first casualty. Micro and smaller businesses are affected by this atmosphere, particularly start ups, without a trading track record, for whom bank lending has all but dried up.
However, all is not lost. There are still businesses, particularly in the Midlands, who are determined to succeed. While there is no silver bullet, a carefully crafted strategy, supported by a well-presented business plan, the support of quality business advice and a determination to seek out creative funding solutions, mean that finance can still be sought, no matter what stage you are at in your business journey.’
For help finding a funding solution for your business, contact me.