Small businesses, currently feeling the grip of their (not necessarily of choice) bank’s remit response to commercial borrowing, understand, as do some outsiders, the seemingly labyrinth like business models used by capital market bankers have a down the line impact.
With a UK factoid of 5 main lenders lending to 90% of small and medium sized businesses, along with no raised hat to micro business, or mention of alternative sources, the notion of little room for manoeuvre is perpetuated.
True, lines on business graphs and charts all seem to be leading south as emerging markets continue their trend in deterioration or, at best, stagnation.
True, bank balance sheets are being rebalanced, for a capital ratio target deadline of 9% by June 30.
And likely deleveraging will be on buzzword bingo listings as the less-is-more attitude translates to lending being decreased, with more hurdles to overcome before more credit is made available; at more expensive rates.
True, what is good for business can often be brutal, yet guns being held to heads, shotgun approaches, Mexican standoffs and shotgun (business) marriages are a brutal, messier side to business which, more especially during tough times, seemingly resolve an issue but merely extenuates a challenge.
True, life isn’t fair, however, ensuring that you have a fair chance with your business means finance beyond UK lending 1 in 5.
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