Conrad Ford

Small Business Overdrafts Fall by £100m As Banks Adhere to New Regulations

Small Business Overdrafts Fall by £100m As Banks Adhere to New Regulations

Small business overdrafts are ‘dying out’ with the value of overdrafts falling by £100m a month, according to a report by Funding Options. The findings found that small businesses were borrowing £12.1bn in bank overdrafts at the end of March this year, compared to nearly £14bn at the end of September 2014, representing a fall of 13%. The value of bank overdrafts to small enterprises has fallen 42% over the past five years down from £20.9bn in April 2011. Its suggested that small business overdrafts are now particularly unattractive for banks, who have been reducing this type of lending since the recession with banks required to retain higher levels of regulatory capital if they have large amounts of unsecured lending to smaller firms on their balance sheets. Conrad Ford, CEO of Funding Opt... »

Alternative Business Finance: What Are the Options?

Alternative Business Finance: What Are the Options?

It’s no secret that access to business funding dried up dramatically after the financial crisis in 2007. Unfortunately, the issue has persisted ever since, and many firms still find it excruciatingly difficult to access loans the old-fashioned way, in particular early-stage and fast-growing businesses. Now it seems that government focus has shifted from trying to force or incentivise banking giants to lend more money, to finding ways of obliging them to recommend alternative business finance. A shift in attitude made clear in the recent Queen’s Speech, which ushered in new legislation telling big banks that they will now have to point would-be borrowers in the direction of alternatives when they cannot access bank loans. But what are the alternative sources of business finance? Well, there... »