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UK Economy

It’s real doom and gloom today after the Office for Budget Responsibilities report. The growth of the economy is down to 0.9% next year and 0.7% the year after.  It seems that due to the euro zone crisis we are in for a bumpy ride, and looking towards a global double dip recession! Its the kind of news you really need before Christmas.

Despite the general low, the government will introduce easing in bank loans to small and medium enterprises. Up to £40 billion will be underwritten to provide low interest business loans to those companies.

There will be a £1 billion  business finance partnership to raise money for medium sized firms, and a business rate holiday relief for small firms extended to April 2013.

All these are positive elements.

It can put companies in a lot of worry to hear such tales of woe, but lets be honest, its not been easy for the past 4 years, so we are now kind of used to it.

Small and medium enterprises are the fuel of the economy, despite the recession there was an increase in the start up of small companies, especially those aged under 30. On the flip side many companies when into liquidation and closed down.

Others were very savvy, and those who had to make a huge amount of staff redundant would either place extra responsibility with those who would stay working, or employ freelance and small firms to complete the work on a contract business, this saves a lot of money, and then finances can be used sensibly.

So, on that point it might have been a great year for freelance self employed workers and smaller firms.

Despite this, if you know your business is secure but you need funding to grow and move on, you can chose other solutions to gain capital, rather than a business loan, choose factoring.

 

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