Jul
29 Banks to be pressured to increase business lending
Vince Cable, the government Business Secretary, has warned banks that they are not acting in the national interest, failing to increase lending to businesses. The banks argue that there are loans available but many cautious business owners are not applying.
Mr. Cable has made it clear that the government are currently monitoring the situation and if it does not improve sufficiently in the near future more bank regulation may be needed. This may be in the form of bonus restrictions or loan guarantee schemes.
Mr. Cable is looking into a range of measures to improve the flow of cash to businesses. However many business owners do not want to take out business loans where the high rates of interest make it difficult for them to afford repayments. Perhaps the business secretary should be pressing for banks to reduce rates offered to customers first.
Finding the best rate business loans could save your business money each and every month. Whilst high street banks insist they are lending to businesses it is certainly at a price and many business owners would be better looking at an independent business loan broker who have access to multiple lenders to secure the best deals.
A quick enquiry to them will show you whether they can offer you a better rate than your bank. They are also useful if your business has had credit problems in the past or been turned down elsewhere. By utilising a broker you have access to specialist lenders looking for your type of business.