For small to medium sized businesses, the last few years have been difficult. In the Bank of England’s most recent Trends in Lending report, it was stated that the growth in stock of lending to SMEs was negative in the three months leading up to February this year. However, although this may seem discouraging, there are plenty of positive signs ahead.
Changes are being introduced which look likely to make it easier for small businesses to get the funding they require. Business owners no longer have to rely solely on banks for their funding, but have the opportunity to source funding from a whole host of different sources. The new British Business Bank referral scheme is based on the idea that a business which has been turned down for a bank loan will be referred to another financial lender who will hopefully be able to offer them an alternative. This scheme has not yet been introduced and the exact details remain to be seen, but overall it seems that this will provide a positive boost for new business starters.
New data sharing techniques could also be introduced as a part of this scheme. Financial providers currently use Companies House to obtain information about businesses before deciding whether to offer them funding, but this sometimes means that the information they find is outdated. The new referral scheme could involve agreements to share current account information with the lender, allowing them to make more informed decisions and making it easier for businesses to access funding.
It remains to be seen how this new scheme will affect the financing process for businesses, but in the meantime, we are here to make your life simpler when it comes to business funding. If you need any sort of help with securing loans, mortgages and funding, we can help. We specialise in finding lenders for leisure business funding, including hotel, guest house, marine and equestrian finance. With our help, you can optimise your chances of securing the funding your business needs to get off the ground or to improve fortunes for the future. Just get in touch if you would like further information about what we can do for you.