Access to finance: Business needs confidence to borrow
CONFIDENCE is the key to bridging the gap between banks and business. That was the conclusion of a round table discussion on access to finance hosted by TheBusinessDesk.com
While banks are making funding available, a lack of confidence in the outlook for the UK economy is making firms cautious about taking on new borrowing.
The participants agreed that those businesses that are doing reasonably well, despite market conditions, need to find the confidence to start borrowing again.
Jim Sparling, of Barclays Corporate, said: “The paradox is that if all those better businesses that could and should be lending aren’t, it becomes self fuelling.”
However, there was some criticism of banks round the table and the way decisions are made.
John Cleland, from law firm Pinsent Masons, questioned the way some banks communicate with businesses looking for funding.
“Some banks immediately say they cannot lend but there are a number who sit on the fence and say ‘it’s with credit’. That erodes relationships unless you can get quickly to an outcome because there is an investment decision sitting on it,” he said.
The contributors to the discussion were: Lee Collinson, head of Yorkshire, Barclays Corporate; Jim Sparling, Corporate Director, Barclays Corporate; Howard Kew, chief executive, Financial Leeds; Andrew Palmer, regional director, CBI; Mike Firth, entrepreneur and founder of Yorkshire International Business Convention; John Cleland, banking and finance partner, Pinsent Masons; Mark Lister, corporate finance partner, PKF and Paul Joyce, managing partner, Ramsdens Solicitors.
