Small Businesses Granted Over £40m in Bank Loans via Appeals

Report reveals Appeals Process helped revoke over a third of rejected small business loans Over the last three years, small businesses have received a total of £41.7m through the independent business loans appeal process, it was announced this week. The report, conducted by independent external reviewer Professor Russell Griggs OBE, showed that a total of 3,518 appeals were made this year, rising from 3,311 last year and resulting in £13.1m of lending going into the small business community in 2014. Over the three years that Griggs has been reviewing the process, there has been 9,006 small business loan appeals processed and 3,274 of these were reapproved (36.4%). The report also highlighted the main reasons why businesses were declined loans; failed credit score is the highest at 43%, fol... »

Bank Roadshows Help Small Businesses Access Finance

Business owners can find out how to make the strongest case for a loan, following the launch of a series of regional roadshows by the Business Finance Taskforce. The Better Business Finance initiative was originally announced in October 2010 by the taskforce, which is led by the British Bankers’ Association (BBA) and includes the main six high street banks. The initiative is part of its commitment to improve small businesses’ access to bank finance and advice. The first free “outreach event” took place in Sheffield this month, where local businesses took part in workshops and a panel discussion. Similar events are due to follow in all the UK’s major cities, listed on the Better Business Finance events page. BBA spokeswoman, Lesley McLeod, said that the initiative shows the banks’ support f... »

Sources of Funding for Small Business

Once you have exhausted the 3 F’s (Friends, Family and Fools!) for funding your business – where else might you look? In the current climate, funding is still available, however the criteria for obtaining money into your business may be more stringent. Finance for business can be obtained through a number of different sources summarised below: Loans Loans are an excellent source of finance if you have suitable security to borrow against or a reliable earnings stream. This needs to be planned and presented well to obtain funds. Credit cards – Provides up to 56 days free credit if you play the game – otherwise the cost of borrowing is high and not recommended. Overdraft – Banks can be surprisingly supportive when presented with a well thought through plan; albeit the ... »

SMEs Prefer Overdrafts to Loans

More small-business owners are using bank overdrafts rather than loans to finance their firms during the recession, according to credit reference agency Creditpal. A Creditpal survey of 540 small businesses found that 30% had applied for an overdraft or overdraft extension during the past two years, while just 21% had applied for a bank loan, despite business loans being a much cheaper form of debt finance. “Many small firms have chosen to stick with their current bank for overdraft facilities, rather than try to approach a new lender for a loan,” said Creditpal chief executive, Chris Poll. “Overdrafts are obviously a fast and effective means of extending finance and businesses shouldn’t avoid them automatically if they are suitable for their needs. But the rates of... »