July 06, 2010
The coalition government has pledged to reopen a prominent lending forum and discover how best to secure the financial futures of thousands of small businesses around Britain.
Business Secretary Vince Cable will revive the Small Business Finance Forum, set up by Labour predecessor Lord Mandelson, in an effort to “ensure that bank lending agreements are being honoured”.
“We do not expect to see viable businesses deprived of credit or working capital by banks that are largely owned by the taxpayer, or the general beneficiaries of wider public support,” added Mr Cable.
"The banks claim that there is no demand. That is not right. If the bar is set too high, of course no one is willing to jump.”
Established in 2008, the forum has not met since before this year’s election and senior figures from HSBC, Santander, Lloyds, Barclays and other leading banks, who contribute to the forum, had worried that David Cameron’s government would abandon the platform.
"We want the forum to carry on. The banks were there, and they were open to criticism and liked the praise when we thought things were working,” added a Federation of Small Businesses (FSB) spokesman. “It needs to carry on for the Enterprise Finance Guarantee to prosper."
The Enterprise Finance Guarantee, established last year, supports SMEs around the country by guaranteeing business loans of up to £1million and supporters were keen to see its progression into a new parliament.
But, with Britain still reeling from an unsympathetic recession, securing finance remains the hardest issue for many of today’s entrepreneurs and SME business leaders.
While the Finance Forum opens its doors once more, business owners must seek advice and discus financial planning before it’s too late. By dodging any lingering credit crunch bites a secure a stable future is possible with the right help.
