Banks are the main finance source for SME’s in the UK. Recent reports show negative growth for SME’s which has not been helped by banks not lending so freely, thus making it harder to acquire traditional sources of working capital.
It appears that banks were over £1 billion short of the agreed target to lend to SME’s when the government scheme was launched over a year ago.
Due to the global framework governing the regulation of bank capital in the current financial crisis also known as Basel III, which encourages and promotes banks to lend to fewer high risk businesses and instead hold onto the capital. SME’s are considered high risk ventures which will ultimately hinder their growth and expansion.
If your business in struggling financially and can’t get backing from your bank, why not talk to Beer & Young. Beer & Young offer free, no obligation advice as well as having the largest network of active business angels in the UK. Call today- help could be at hand.
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