By Guy Rigby, Head of Entrepreneurial Services at Smith & Williamson
Despite the fact that most respondents’ appetite for borrowing hasn’t altered since the results recorded in early summer, 31% of respondents indicated that they believe that access to funding is improving.
Simon Burton, Managing Director of Exposure Communications says, “I think that if you know how the system works, you have a track record and you understand who to talk to, access to funding is as easy as it ever was”.
Simon added, “I think the real issue is for the people who aren’t part of that world, who are trying to raise funds and exist in that entrepreneurial world but don’t understand how to play the game. I suspect for those people it is really challenging to get funding.”
It is crucial that businesses can access affordable and appropriate finance. Vince Cable recently said that, “inadequate access to finance for small and medium sized enterprises is one of the biggest risks to economic recovery,” and that, “we need bold action to fix what has always been a weakness of the UK economy, and since the financial crisis has become an urgent problem”.
Cable said that while the government is making strides to reform the banking system in the UK, “more needs to be done to ensure that it sufficiently serves the manufacturers, exporters and high growth firms that drive economic growth”.
For these reasons, in September last year, Vince Cable announced one of the Government’s responses to improving finance, the Business Bank. He said that it was the government’s aim to cultivate a new institution to support finance smaller businesses in the UK. The promise was that this institution would bring together £1bn of new Government capital and £2.9bn of existing capital.
By necessity this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Article correct at time of writing.
[b]Smith & Williamson LLP
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