Bank On It

NIKE would say ‘just do it’. And firms are being encouraged to do just that when it comes to applying for bank lending.

The concern among business owners is that they will be rejected for bank finance, so some are put off from applying. The message from experts is clear. Put more pressure on your lender to part with their cash. For some businesses, it could mean the lifeline they crave to survive.

The ongoing battle between the Government and the banks, regarding how much they ought to lend, continues. The figures put forward by both are said to differ markedly.

There is a softening approach from the banks, though. Firms are being urged to demonstrate confidence in approaching financial organisations because lenders are said to be more sympathetic to company’s needs.

That, in part, is because the banks are being put under increasing pressure from the Treasury to help those who need it.

So, for those businesses seeking much-needed assistance, be it for cash-flow or to expand while having a robust business plan to back up their intentions, now is considered a good time to act.

They are also being encouraged to tighten up their procedures while looking at lending from the banks’ perspective, ensuring that any information they give is transparent to support viable applications.

With the initiative Doing Business Together helping to bridge the gap between both parties there is hope that firms will get a better deal in 2011.



4 Comments

  • Why not ask the banks? I agree. They should help out more and is they are going to be more lenient to businesses then that can only be a good thing.
    The fact that the Government owns most of some of the leading banks like RBS, you would think they would have more of a say but it seems the banks STILL have the biggest say. And bonues, so far as I can gather, are still paid. Which seems obscene.
    I agree that the tellers and shop floor staff should get their annual £1,000 or whatever it is they get. However, the big bosses raking in millions of tax payers money after having their livelihood saved by those very people is just not right.
    If anyone would like to beg to differ, then please do.

  • PS. Have just read online that the banks are still being less than cooperative with the Government in deciding just how much they should be lending. Something should be done.

  • The banks have had it easy and it’s about time they were made to lend more money.
    I friend of mine works for a business in Farnborough and because of a lack of funding last year, she was almost without a job as the firm almost ran out of cash.
    This is a profitable business but one that needed help with cashflow.
    Thankfully, funding was arranged at the 11th hour and the business was saved.
    It meant my friend kept her job and the business owner got his reward for sticking his neck on the line and giving his all to keep his livelihood afloat.

  • I agree. banks have had it all there own way. They want their bonuses and they don’t want to lend enough.
    They’ve killed a lot of businesses through this reluctance to lend and I for one which they would become more accountable.

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