Recently we have helped three businesses achieve loans from one the high street banks utilising the Enterprise Guarantee Scheme. Not massive loans, in fact all under the £50,000 mark but what this means is that the businesses concerned can make the investment to reach the next stage, the next steps to bigger goals.
This is an important point on the loan from banks issue. These businesses have been trading for a minimum of a year and have accounts that show potential, not all showed a profit (no losses though), but could prove that they were able to service the loan. Very limited risk, which is reduced even further by the guarantee provided by the government.
This is what the banks are all about! LIMITED RISK. But my point is it is possible with a show of potential and an exceptional business plan, by us of course, a business can relatively easily access this sort of finance. These amounts cannot be sniffed at either, by any business in the SME sectors. This could be a salary for a salesperson who could double sales or an accounts person who could free up an owner to drive the business forward.
My message to the banks is, get organised with this scheme. Many managers do not know the ins and outs and certainly don’t offer it to their clients. Some training is desperately in need here to be able to deliver this service efficiently.
It’s not rocket science is it? Never the twain must meet and help George Osborne out with his Credit Easing plans and we shall all enjoy a healthier economy and brighter days.
