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.