In the autumn statement, the Treasury announced a new package that is designed to make it easier for small companies to borrow money.
A further £400m will be available for government-backed venture capital finance, which is provided via the Enterprise Capital fund. In addition, a further £500m will be allocated for bank lending under the Enterprise Finance Guarantee Scheme.
The Funding for Lending Scheme (FLS) will also be extended. It will be available for a further year. The Chancellor, George Osborne, announced that smaller firms would get better access to FLS cash, adding:
“Now that credit conditions for households and large businesses have improved, it is right that we focus the scheme’s firepower on small businesses, which are the lifeblood of our economy.”
The British Business Bank, set up by Vince Cable in 2012, will administer these funds. These schemes are aimed at ensuring that the Government reaches its target of giving SMEs access to £10bn of finance by 2017/18.
Other changes are aimed at freeing up more cash for companies. As an example in the future, a firm that provides apprenticeships will no longer have to make National Insurance payments for its apprentices.
For enterprises that meet the criteria of the various schemes, borrowing money should be easier. However, many firms will need to use alternative financing products, such as asset financing and equipment finance, to get the funds needed for expansion. This is why many are turning to us a DJB. To find out more about these alternative forms of lending and how your firm could benefit, please get in touch with us.
Witten by Mark on