It doesn’t take much to set up a business in the United Kingdom, but good luck finding a bank willing to loan you the startup cash.
Banks have all but forgotten their purpose and value to a community. Instead of helping entrepreneurs start or expand their small businesses, banks are squirreling away scandalous amounts of taxpayer money available through the Funding for Lending Scheme (FLS).
Data from the Bank of England show lending in the first quarter of 2013 was down £300m. Sadly, that was an improvement from fourth quarter 2012 when it fell £2.4bn.
The losers in the FLS are the five million small- and medium-sized enterprises (SMEs) that account for 99 per cent of the businesses in the UK. Recent reports claim that only 20 per cent of the small businesses receive funding through bank loans.
Banks offer the usual excuses – business owners aren’t prepared when filling out loan applications and don’t know enough about their business when they speak to bank officers – but the bottom line on borrowing hasn’t changed for many years and business people are tired of waiting.
The truly reckless ones resort to extremes that include taking out payday loans to meet expenses, but steps like that more often lead to disaster than a settlement of the problem.
So if the banks are unwelcoming and you’re not desperate enough for payday loans, where do you go to finance your small business? Here are a five suggestions, but know going in that there is no quick, easy resolution to the problem.
Bill Fay is a writer for Debt.org, focused mainly on news stories about the spending habits of families and government. He spent 21 years in the newspaper business and eight more in television and radio, dealing with college and professional sports, then seven forgettable years writing speeches and marketing materials for a government agency.
We, at Microsoft, provide ‘Talking Business’ to help entrepreneurs and business owners’ succeed. We believe in your ability to innovate and in the ability of technology to help, so to support ‘Talking Business’ we have many resources available for businesses like you. We have an informative newsletter, blog posts by people in the industry, and a community looking to help small business succeed.
Follow us on twitter - @MicrosoftSB, or use the hashtag #TalkingBusiness to find out more information
Unfortunately the Funding for Lending scheme hasn't lived up to it's promises and many start ups and SMEs are still struggling to get finance, particularly through the banks. Very sensible advice with the summary of alternative lenders, hopefully those struggling to secure finance from the bank will have success with these alternatives.
Helpful points you have here. I am just thrilled.
Wow, very helpful tips.
These loans are advanced against a touch high rate of interest. Create wants that need to be supported straightaway. You’ll merely get these credits. A quick day loans can assist you and your family do exactly that quick!