The regional lending intermediary service, which is available via Business Link, provides intensive support for businesses encountering problems accessing finance once a need has been identified. The free guidance and support is available to help forge stronger relationships between small businesses and banks.
According to the FPB’s recent Economic Downturn Panel survey, 66% of respondents said they would welcome more localised support from their banks. In addition, 61% want bank managers to better understand small businesses.
The FPB is urging lenders to pledge their support for the scheme. Figures suggest that many small businesses are reluctant to explore support schemes delivered by their banks out of fears of being classed as ‘high-risk’.
In all, 27% of respondents to the FPB’s survey were concerned that applying for the Enterprise Finance Guarantee (EFG) scheme – the Government’s high-profile lending guarantee package for small businesses – would encourage this perception. In addition, 20% feared that borrowing would be further restricted as a result of their applications.
“The lack of availability of credit remains a concern and the cost of finance is still high. Many small firms are being rejected simply because of their size or industry sector,” said Nick Palin, the FPB’s Director of Finance.
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3 comments so far
1 Smart Factoring Quotes // Oct 31, 2009 at 7:46 am
I don’t think the EFG scheme is working at all. The banks are just not supportive of it.
2 John Atkins // Apr 16, 2010 at 3:00 pm
My bank (NatWest) is still looking at me restructuring my company’s finances with an EFG after 15 months. They have done nothing in all that time but demand more and more numbers, which I’ve supplied. They aren’t interested in a vibrant business plan. I think they are just monitoring to allow things to get so critical, they can justify pulling funding altogether. They are not there to help
3 Smart Factoring Quotes // Aug 30, 2010 at 5:28 pm
I think that this is a sentiment shared by many business owners