How does a business obtain a loan under a bank’s normal lending criteria when they don’t have the required security? …..Via the Enterprise Finance Guarantee Scheme? The EFG lending figures have been published and show, for financial year 2012/13 a total of 1,834 loans being drawn down from the 50 lenders, amounting to a total of £201,903 advanced……
Are lenders and banks too risk-averse? Or, are smaller enterprises not interested in investing in their business in this changed climate? Banks and lenders have adjusted their risk assessments – it’s not news that they aren’t an easy access to finance – however, credible sources of affordable finance are available but the chosen route, whether a bank or alternative lender, require a current mutual understanding of each other, as well as the risks associated; only then can the lender and business manifest themselves for potential in meeting each other’s needs.
Not for short term cash injection, the Business Finance Partnership initiative is aimed at cutting borrowing costs for smaller companies. Selected partners have invested with the government for lending to businesses with up to £500m turnover, although Vince Cable’s business department has access to about £100m which is being advanced to non-bank sources i.e. peer-to-peer lenders who offer short term finance, the same as similar competitors to the market, crowdfunders.
The Autumn Statement increased Capital Allowances, from 1st January 2013, from £25,000 to £250,000 to encourage investment in plant and machinery. What is a Capital Allowance? In simple terms, it’s a qualified amount that Companies may deduct from their taxable income. The Annual Investment Allowance increase is a ‘pro-growth’ measure.
Don’t forget 31 January is the last day to file 2012 Self Assessment tax returns online – any balance of Self Assessment tax owing for 2011-2012 should be settled on time.
Image and Article credit: Copyright SUF 2013
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