Does worrying about your business finance keep you awake at night? While this might not quite be true, many small businesses will find securing additional funding a constant headache. However, Business Secretary Vince Cable has revealed that small business finance does indeed have him tossing and turning – it’s one of the issues that he’s most worried about.
When speaking at Innovate UK in London, Cable commented: “We’re dealing with the legacy of a terrible financial crisis and it will take a while to get lending flowing to SMEs. This is the one subject that keeps me awake at night.” He then went on to add that “banks aren’t doing what they should be doing – lending to SMEs.” This is despite schemes from the government such as Funding for Lending which even he has admitted “frankly isn’t yet working the way it should.” Indeed, in the months after its launch the scheme was showing only marginal benefits, and mostly to bigger businesses at that. It has failed to significantly impact on small business lending rates as of yet, despite high hopes to the contrary.
However, efforts are continuing from the government in trying to get more finance flowing down supply chains and throughout the business sector. Cable stressed that “we realise there’s a terrible problem but we’re doing all we can”, speaking of Ministers’ attempts to get capital flowing to small firms which has of yet been fairly abortive, unsuccessful or simply un-viable.
This all speaks to the difficultly of dealing with the aftermath of the recession and in getting the grass roots of the economy moving again. However, business finance doesn’t just end with the banks, especially when they’re unwilling to lend. If you’re having trouble securing finance, then looking into alternative methods, such as invoice factoring, could help you to sleep soundly at night – even if Cable can’t.