Businesses Unaware Of Loan Guarantee Scheme

Fri, 13 Mar 2009

A new report has revealed that most UK businesses are unaware that their bank offers loans under a £1.3bn government lending scheme designed to help save firms from collapse.

The British Chambers of Commerce (BCC) said the findings from a survey of 250 companies across the UK showed that just one firm had been offered a loan based on the Enterprise Finance Guarantee Scheme .

Ninety per cent of those polled said they were not aware that their bank had offered or made use of the scheme, while almost two out of three revealed that late payment of invoices was continuing to hit their finances .

The study also showed that more than half of firms seeking a bank loan either failed to secure one at all or did not receive enough to meet their actual needs.

In addition, half of the firms that had an overdraft said they had seen an increase in the facility charges in the last six months.

The Enterprise Finance Guarantee scheme was launched by the government in January in a bid to help tackle the shortage of finance crippling small businesses in the UK.

Commenting on the findings, BCC director general, David Frost said: "A lot more needs to be done to raise awareness of these schemes."

"It is business that will drive the UK out of recession and it is vital that banks support companies through what is an extraordinarily difficult time.

He added: "The government needs to address the growing pressures on cash-flow within businesses, even beyond relationships with banks ."

"This means scrapping the planned rise in National Insurance contributions, calling time on harmful extra regulation and freezing the national minimum wage."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page



 

Business Newsletter

Please enter your email below and subscribe to our monthly newsletter

Reduce mortgage paymentsSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health InsuranceProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.