The coalition government has announced plans to make more funding available for small to medium businesses.
These plans have been filtering through over the past year or so, with high street banks being able to offer lower interest rates to small businesses due to financial help from the government. Now there are even plans underway to open a brand new government-funded bank aimed specifically at meeting the needs of SMEs.
The government’s goal is to encourage diversity in British economy. By targeting assistance towards manufacturing and trade they are hoping to create a varied marketplace that is no longer dominated by a handful of multi-nationals.
To this end there are a number of start-up grants potential business owners can apply for. There are also hopes that the new bank will be able to take money from private sector investors to create a pool of around £10 billion for loans to SMEs.
Small businesses often struggle to stay afloat in today’s marketplace. The internet and the affordability of global travel in the past 40 or so years have changed the way business is done.
It is now more possible than ever for just one or two huge companies to run everything. Due to this we are losing a lot of cultural diversity, which is why the government is trying to intervene.
There are several ways in which small businesses can save money as well as through loans. Make It Cheaper are the savings experts for business. They can compare prices for gas and electricity, insurance, telephone lines and broadband to find the very best deals around.
Having a website as well as or instead of a physical shop can cut down drastically on overheads. Streamlining business practices to make things more efficient also saves money.
Once the new bank launches, SME owners will be able to take advantage of a number of small, unsecured loan packages at a discounted rate. Not only will the interest rates be affordable but the repayment schedules will allow a far higher degree of flexibility than ever before. The minimum loan amounts will be also be lowered.