Cashflow

[Somecamel]

I have run my company for the last 3 years with no credit facilities whatsoever.
We have undertaken an expansion and have a lot of work coming in at the moment, The banks do not want to know. We are a profitable business with management accounts to prove and a good history of sales on out statements.
I asked for a £5000 overdraft to help with cashflow. They refused.
My personal credit is good.

I can't be the only company experiencing this. Banks being far too careful with who they lend money to. If we're to move forward and improve our economy, small business like me need help.

The Banks only seem interested in the big companies and franchises.

 

[Lancelot]

Banks are like that, unfortunately. SME's are not really a good market for them.

There are however other ways to obtain finance. Have you heard about EIS? This is quite a good scheme and although you will give away some equity, you will still be in control. What you need to do is to find an individual willing to invest in EIS.

Search on HMRC for EIS schemes (I am not allowed to post links yet).

 

[bizloanservices]

Try http://www.fundingcircle.com - a viable alternative to traditional bank route.

 

[cws accounting]

I have run my company for the last 3 years with no credit facilities whatsoever.
We have undertaken an expansion and have a lot of work coming in at the moment, The banks do not want to know. We are a profitable business with management accounts to prove and a good history of sales on out statements.
I asked for a £5000 overdraft to help with cashflow. They refused.
My personal credit is good.

I can't be the only company experiencing this. Banks being far too careful with who they lend money to. If we're to move forward and improve our economy, small business like me need help.

The Banks only seem interested in the big companies and franchises.

Why do you need the finance? You say you have undertaken an expansion and have lots of work coming in, so is the finance needed to purchase assets for the expansion, in which case you should consider asset finance such as HP, or if it's to fund your short term cash flow until your customers pay you then you should consider factoring/invoice discounting. An overdraft is not your best/only option.

 

[cjd]

If your personal credit is good, use your credit card.

 

[malcolmpiper]

I've just posted a blog on this exact topic. It seems like the banks are lending in the right circumstances as they're only just down on their qtr target for Project Merlin - http://www.ukbusinessforums.co.uk/forums/blog.php?b=1608

A post above mentions EIS which is a good initiative, but may not be right for you - http://www.hmrc.gov.uk/eis/

There are alternative forms of finance and selective invoice discounting is one http://www.tandemuk.com - and there are other providers if you do a web search.

Finally, there will be a solution for you and I'd recommend talking to a good broker and Liam Walker from Anglia Finance or Phil Evans from Enable Finance either of which would be a good place to start.

I hope this helps

 

[Anglia Finance]

I've just posted a blog on this exact topic. It seems like the banks are lending in the right circumstances as they're only just down on their qtr target for Project Merlin - http://www.ukbusinessforums.co.uk/forums/blog.php?b=1608

A post above mentions EIS which is a good initiative, but may not be right for you - http://www.hmrc.gov.uk/eis/

There are alternative forms of finance and selective invoice discounting is one http://www.tandemuk.com - and there are other providers if you do a web search.

Finally, there will be a solution for you and I'd recommend talking to a good broker and Liam Walker from Anglia Finance or Phil Evans from Enable Finance either of which would be a good place to start.

I hope this helps

Informative response Malcolm.

The small SME market is very hit & miss with the Banks. I would be happy to chat through with you, please direct message me or call me.

Regards

Liam

 

[Lancelot]

Maybe you should change your bank. I watched yesterday on BBC News about a Swedish bank where these decisions are taken by the bank manager himself/herself without intervention from the head office. So that, you will eliminate the bureaucracy within the big high street banks.

 

[Somecamel]

Hey,

Sorry for the late reply.

Just an Update.

Have changed banks etc- Funny isnt it- Natwest- Half owned by the government- Project Merlin- and still not lending

Got a personal loan through Tesco's in the end.

Thanks for all the pointers though

Lee