Firms encouraged to look at alternative finance models
SMALL business owners are being reassured that finance for companies with minimal assets or a lack of security is still available despite the banking crisis.
According to Venture Finance the Small Firm’s Loan Guarantee (SFLG) is a valuable resource providing up to £250,000 in lending, but few companies are taking advantage of the finance model.
Research by Venture shows that even though 66% of UK accountants consider SFLG an attractive form of finance none had clients currently using the scheme despite the Department for Business Enterprise and Regulatory Reform (BERR) abolishing the requirement that borrowers had to be trading for less than five years.
In fact figures from the Government department reveal that lending under the scheme has dropped.
Alison Small, managing director at Venture Finance North, said she was surprised at the figures.
“Our own experience of the SFLG has been very positive, with loans worth almost £20m arranged to date.
“As the first and therefore most experience, independent invoice financier to be authorissed as a lender, we have witnessed firsthand the positive impact this injection of funds an have on a company.”
She added that SFLG was a fast and reliable cash injection and a great scheme to take small businesses to the next level in their growth strategy.
“The boost in resources it provides can push a business to achieve growth and expansion plans, allowing them to widen their customer base and fulfill bigger customer orders.
“The last budget outlined a 60% increase in funding from the government, meaning that companies looking to expand can exploit new opportunities in these difficult times.”
