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News Article Comments : Credit crunch hits funding for pubs
The amount of funding sought by small businesses increased rapidly in the lead up to the credit crunch — but more firms were rejected.
That’s according to a Government-commissioned survey of 2,500 small firms, including pubs, by Cambridge University.
The average amount of funding sought was £470,000 in 2007 — up six-fold on 2004 (£82,000).
Meanwhile, 29% of firms seeking finance in 2007 were wholly or partly rejected — 26% were in 2004.
“Although the funding requirements of small businesses rose steadily during 2007, the likelihood of banks awarding funds fell just as steadily,” said Forum for Private Business director Nick Palin.
“The credit crunch has made accessing finance much more difficult. It is important that the Government streamlines the application process and that small firms consider switching banks, or seek out alternative funding streams.
“Businesses are also not cutting costs where they could — £200m in small-business rate relief goes unclaimed each year.”
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Forum user 4238 05/09/2008 15:03:12  |
RE: Credit crunch hits funding for pubs The content of this post is currently under review |
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George Baker 05/09/2008 16:51:22 |
Credit crunch hits funding for pubs “The credit crunch has made accessing finance much more difficult. It is important that the Government streamlines the application process and that small firms consider switching banks, or seek out alternative funding streams". So what's an alternative funding stream? Grandma perhaps? Don't you just love the contrast between this story and the one only 2 weeks ago: "Major banks have denied they are tightening the screw on loans and overdrafts as the economic slowdown continues to hit the pubs and leisure sector. It follows revelations by banker HSBC that it has restricted its loan facilities to certain companies. The bank said the leisure sector had suffered difficulties and it had been forced to tighten its lending criteria. But three other clearing banks – Barclays, Royal Bank of Scotland and Lloyds TSB –say they are not going down the same route. Trade groups and finance brokers also say they have not detected any material change of policy by the majority of banks". Let's all pull the duvet over our heads and hope the bogeyman won't find us. edited by: George Baker at: 05/09/2008 16:51:28 This post replies to this thread |
