Managing Your Cash Flow

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Government set to announce new loan scheme

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The Times reports that the programme would be similar to the present small business scheme, whereby the government guarantees 75 per cent of a loan of up to £250,000.

The Conservatives are pushing for the scheme to be worth £50bn; Shadow chancellor George Osborne has told the BBC: "The Conservative Party has been proposing the scheme now for more than two months.

“The dithering in government has cost the jobs of many people."

Meanwhile, the BBA says its latest data on support for small businesses indicates growth in lending to these companies slowed towards the 2008 year-end but is above that experienced in 2007.

BBA statistics director David Dooks says: “Loan demand is slowing and small businesses are using their cash flows for working capital, rather than seeking credit options. Nevertheless, over 40,000 small businesses a month are establishing new banking relationships with high street banks.”

However, Real Business readers paint a different picture of what it’s like to deal with the banks at the moment.Richard Dinnick comments: “We have continually asked lloyds TSB for an overdraft facility of £1k to act as a cushion to the continual late payments we are suffering. They continually refused us.”

Related articles“How do I keep my bank facilities?”Lloyds TSB provides relief to SMEsHow to raise big bucks

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