Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
On the BBC this morning the financial geezers indicated that all the small business's who put in for funding,,,,,,,,,,,,,,,,,,,,,,,,were rejrected
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Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Lets expand on this and tell the proper story. I was reading it yesterday in the financial updates.
I forget the exact percentages but the banks turned down approx 42% of small business loan applications, up from 41% last year.
Are you suggesting Keith that banks should be lending to businesses that do not have a viable business plan or lack appropriate security or ability to service a loan?
I am a big supporter of small business and advise a lot of them while not being a big fan of the banks. But this really is a non-story and is all about responsible lending.
Though corporate lending is not a 'regulated loan' it is possible that the banks are being over cautious due to the atmosphere created by the overly intrusive regulator. The headline figures do not tell us the whole story and we do not know whether it is responsibility or excessive caution. This is not enough of a story to beat the banks with.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
barryw
it was reported by a financial geezer barryw
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Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Indeed Keith, a financial journalist. Makes a good headline but more detail is needed and I will be looking out for it from my sources.
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
Maybe it's a case of these small businesses not producing a good enough business plan for the banks ?
More small businesses are needing short-term loans to take on new work, but can't get them and that can sometimes kill a business, or in the least, stifle its progress.
Roger
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
your correct roger
bartyw
the guy was a financial advisor
just like yourself
not a journalist
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Guest 671- Registered: 4 May 2008
- Posts: 2,095
Small businesses in UK still denied access to finance, more than four in ten small firms in the UK have had their applications for business loans turned down, according to a new study from the Federation of Small Businesses (FSB).
Almost two thirds of FSB members think that the availability of credit for small firms is poor, yet many businesses are hoping to expand. Half of the 2,600 respondents said that they wanted to grow in the coming 12 months.
A sharp drop in confidence, as well as the scarcity of finance, may hold back the growth of small businesses over the coming months.
By Financial News
"My New Year's Resolution, is to try and emulate Marek's level of chilled out, thoughtfulness and humour towards other forumites and not lose my decorum"
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Keith - I read it from financial sources, even they focussed on the headline without detail let alone the general media where you would have got it from.
Roger may well be right but we need the detail to see what is actually happening. It is important to find this out
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
I tried to inform him garyc
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Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Gary - thanks for that, I was unable to find my specific source as I read so much of this type of thing daily. Companies refused loans will moan and downplay why, it is human nature. We need a dispassionate assessment with detail and I have not seen it yet.
Guest 671- Registered: 4 May 2008
- Posts: 2,095
BarryW.
#10
That is yet another typical reply that I believe you are truly oblivious to.
Even when it comes from financial sources, even some you have praised before yourself, if they do not reflect your views, then you come up with they are moaning or whinging. They could be moaning because they have a good bussiness plan or expansion plan but the banks are still not lending them the funds they need?
You can never except that they might be right and you might be wrong, can you?
"My New Year's Resolution, is to try and emulate Marek's level of chilled out, thoughtfulness and humour towards other forumites and not lose my decorum"
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
What on earth are you talking about Gary? Are you so blinded with bile against me that you have to have a go when there is no real difference. I am saying that we need to know why this is happening and see if it is justified or not. Unless of course you are suggesting that the banks should just lend blindly regardless of the quality of the submission.
Remember, I run a small business, many of my clients run small businesses as do many friends. I am at the sharp end of this.
Jan Higgins
- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,888
I believe quite strongly that many small businesses need to have the 'right' contacts when wanting to borrow money to expand, the modern equivalent of the old boy network still exists.
When money is short it is entirely logical to lend to those applicants that are known unless an exceptional business plan is presented by a newcomer.
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I try to be neutral and polite but it is hard and getting even more difficult at times.
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Guest 671- Registered: 4 May 2008
- Posts: 2,095
BarryW.
The Federation of Small Businesses are stating "A sharp drop in confidence, as well as the scarcity of finance"
You remarked that it is just "Companies refused loans will moan and downplay why, it is human nature"
All I am saying is that you might be wrong and the FSB might be right.
Instead of moaning due to human nature, they could have a legitimate complaint that they are being denied access to finance. I understand that is not your view but that does not make it un-true.
I am not the one that is blind and accusing me of having bile against you is plain stupid.
I have acknowledged your business acumen several times and defended your rights to your opinions, on many ocasions.
It is your un-necessary derogative remarks to anyone who does not agree with you, that I dislike. It demeans and distracts from the thread and causes "tit for tat" responses that turn people off from posting and yes, hands up, I am guilty of that myself.
"My New Year's Resolution, is to try and emulate Marek's level of chilled out, thoughtfulness and humour towards other forumites and not lose my decorum"
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Is it the Osborne plans for a state bank for small businesses that stymies the chances of small businesses getting a loan from a high street bank, or is it institutional reticence on the part of the high street banks that makes it necessary for the Government to step in?
http://www.ft.com/cms/s/0/1077e7f6-f511-11e1-8d85-00144feabdc0.html#axzz26oCCt7DbIgnorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
P.S.
The Google search I did to get the article I cite in #15 through-up a number of alternatives. Some that 'promise' a decision in an hour and boast a 98% rate of acceptance, that left me wondering just who is the desperate party.
There was also this, "Funding Circle" (see link below) about which I know nothing, but if any reader is in the market for financial assistance for their business, read on...
https://www.fundingcircle.com/about-usIgnorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Gary - look to yourself as far as derogatory comments are concerned, apart from anything else.
If you read what I am saying I am not disagreeing with the FSB, just saying that more information is needed on the reason for refusals. The FSB is a pressure group remember.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
garyc we both tried to be level headed and point out to barryw,
and you are correct in post 14.
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Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Stirring there again Keith - is that all you can do, create arguments out of nothing. There is no disagreement here except in some way manufactured by Gary. Blimey, I even thanked him in #10 for that post and he somehow throws out insults as a result in #14.
Guest 756- Registered: 6 Jun 2012
- Posts: 727
Boys, boys, boys! As the article does not site specifics, could this thread be seen as an argument for arguments sake?
Having studied many a business plan, the basic elements of the plan can be hindered by repetition, insufficient evidence, unsound projections,( both fiscal and production) and poor market research. Some of the best plans I have seen have been really simple and evidence based.
My advice to anyone thinking of starting a small business is to do you research and ensure that you talk to the experts!!