A recent survey conducted by the Forum of Private Business showed that a third of small businesses (37 per cent) seeking business loans were turned down by banks and were unable to raise funds from other sources. (See: Small firms shy away from traditional funding - Shout99, Aug 2014).
Chris Bryce, Chief Executive of freelancer group, the PCG, said: “The approach to lending to SMEs needs to be re-examined. Small businesses are driving the economy forward and banks urgently need to recognise their value and give them the support they need to flourish.
“For those in self-employment who want to develop their business, a small business loan could be the difference between success and failure. The amount of people choosing to go self-employed is growing day by day. Going it alone is now the preferred option for starting a company and if we want these individuals to become the successful businesses of tomorrow the banking culture must change.
“The way successful businesses get off the ground has fundamentally changed and banks need to modernise their approach to lending. For many self-employed people a small loan will allow them to move their home business into a more professional workspace, or to invest in a marketing campaign to find more clients.
“Banks need to start looking at microbusinesses in terms of the opportunities they offer, not the risks they present.”
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Susie Hughes © Shout99 2014