October 7, 2010
Filed under: Business Finance — Alan @ 3:57 am
CEOs from Britain’s largest banks are in the process of setting up a venture capital fund to aid small businesses. The fund would provide a much needed cash flow injection into chosen small business applicants. It might also make them more likely to get credit from lending institutions.
The banks involved in creating the fund are Barclays, RBS, Standard Chartered, HSBC, and Lloyds. The fund will provide expansion and development equity for small businesses and each bank would, effectively, have a stake in the businesses.
The banks will all deposit millions into the fund to get it started, with the suggestion that the amount could go as high as 250 million pounds per bank, the venture capital fund could reach as high as one billion pounds.
This all came about as through a taskforce organized by British Bankers’ Association in combination with Department of Business and Treasury. The venture capital fund is awaiting approval from the Financial Services Authority and the bank boards.
Only a couple of dozen companies whose turnover is under 250 million pounds will probably qualify for funding. Companies whose turnover is under 20 million pounds are not likely to qualify. Business secretary Cable and Chancellor Osborne will receive finalized plans shortly.
The same taskforce who put together the venture capital fund is also expected to recommend assistance measures for small business, such as a new process for reviewing loan applications, a mentoring programme designed for small business, and a promise to provide small companies with more greatly detailed information on loans.
August 14, 2010
Filed under: Business Finance — Alan @ 5:27 am
The Banking Sector responded to criticism over how it treats small businesses in need of lending by saying that many of those who work out of serviced office space can now make use of the ‘lending taskforce’ which includes all of the six major banks in the UK such as the RBS, Barclays, and Lloyds.
Vince Cable placed pressure on banks to start lending to small businesses or face a series of consequences. It is perceived that better lending to small businesses will create new jobs which in turn will help boost the economic recovery.
The BBA (British Banker’s Association) announced in response that they have created a series of proposals that will help to stimulate the private sector with the top figures from UK banks working on groups that will troubleshoot the problem of banking lending.
Chairman of HSBC, Stephen Green, stated in a letter written to Chancellor George Osborne that the banking sector is aware of the need to provide finance to viable businesses in order to support the UK economy and that the taskforce will help explore the issues that surround lending so that finance can be given out better.
The announcement is apparently the Banking Sector’s response to the criticism they have been facing over restricting finance to SMEs.
June 12, 2010
Filed under: Small business — Alan @ 2:31 am
Research from the RBS and NatWest reveals that Britain may be on its way to a full recovery from the recession. Although there are still tough trading conditions, 33% of all SMEs included in the survey reported that they see new growth as their top priority. In response to the positive survey results, both groups have joined to launch a website for support and advice in one place for SMEs.
The new service website is designed to help guide businesses on how to trade in light of the recession by offering practical guides, interactive business reviews, and economic reports.
Chairman for small business at NatWest and RBS, Peter Ibbetson, stated that they have listened to what their customers have to say and are happy to offer a new support agent to help SMEs capitalize on opportunities that await them.
Ibbetson continued to say that while they are aware most businesses will continue to trade cautiously, with more than half of those in the survey stating they want to see more economic stability, their online review is designed to help SME’s avoid the fallback of a recession.
The free review which is the first in UK banking industry history can be found at the SME Business Knowledge Hubs at the NatWest and RBS website. Included in the review are tips on cash flow and risk and the ability to instantly download a report that offers guiding tops with the option to seek out further aid from a relationship manager.
October 16, 2009
Filed under: Loans — Alan @ 6:31 am
The RBS, or Royal Bank of Scotland, has responded to pressure from the Government to increase its SME business loans, by setting up a hotline tailored at helping small firms get approved and access to loans.
Both the RBS and fellow bank Lloyds have come under fire by the Treasury lately, for offering interest rates on loans that are so astronomical SME owners have been afraid to touch them.
The banks defended their position saying that it is hard for small firms to compete with larger companies as everyone is looking to stay out of further debt during the recession.
The Chairman of the small business department at the RBS, Peter Ibbetson, said that the new Business Hotline will be open for all small firms to utilize, even those that may not be customers of the bank.
He said that this way all businesses get a fair hearing, and small firms that feel they should be reconsidered after being passed by, can get the chance to be re-investigated.
According to Ibbetson the bank approves about 85% of all loan applications at the moment, and is always looking at ways that they could increase the lending approval figure.
