Lenders are continuing to tighten terms for small businesses, despite the government-backed Funding For Lending (FLS) scheme providing cheaper finance to funding houses, the Bank of England’s agents report has found. Launched in August by the Bank and the Treasury, the scheme is meant to improve access for SMES and homebuyers to finance. However, the agents’ report said: “The Funding for Lending Scheme appeared likely to have a more immediate impact on the availability of residential mortgage lending than on business lending.” It also claimed that tougher lending conditions remain a problem for SMEs, with the availability of overdrafts reducing further and additional personal guarantees being sought after for those lucky enough to secure funding. The FLS, however, does seem to be helping households with mortgage lending, as rates, it said, had “begun to ease and supply of mortgages at higher loan to value rations was improving”. The Bank suggested that improvements in business lending are unlikely to be felt until the middle of 2013 at the earliest.
Invoice Finance and EFG Scheme
Skipton Business Finance is proud to be part of an exclusive panel of approved lenders on the Enterprise Finance Guarantee scheme (EFG). The programme aims to specifically help small businesses and SMEs gain access to alternative funding solutions, which prove especially useful to those unable to access finance through traditional banking facilities. We’re delighted to be able to provide EFG loans together with our invoice finance products to help boost the amount of cash your business is able to access. With more than £2 billion of funds available to the UK’s small businesses through the scheme up until 2015, it’s certainly worth enquiring to see if your business could kick-start its cashflow through an invoice finance facility topped up with an EFG loan. Why not give us a call today on 0845 602 9354, or click here to read more on the EFG scheme.