SMEs’ credit still frozen amid confusion over government guarantees

SMEs' credit still frozen amid confusion over government guarantees

SMEs still can't access credit despite government's multi-billion pound package

Lord Mandelson

Lord Mandelson

SMEs are struggling to access credit despite business secretary Lord
Mandelson’s multi-billion package to unblock the credit market, according to an
association of accounting firms.

The government’s enterprise finance guarantee, announced last week, will
underwrite 75% of a bank loan made to companies with a turnover of up to £25m.

But Kevin Dickens, president of the UK200 Group, which represents 120 UK
accounting firms, said some high street banks were unaware how to apply for the
scheme.

He said banks had told him the packages will not be available until the end
of February. This could result in businesses going bust and make it harder for
accountants to help clients get credit.

‘The infrastructure is lacking behind the grandiose statements. I have been
trying to work with banks to find out the details of the scheme,’ he said.

’Mandelson said last week the money is available but I went to the banks to
ask for lending for very secure clients of mine but the banks don’t seem to have
the money, the method to lend or knowledge of the schemes,’ Dickens added.

A spokesman for the Department for Business, Enterprise & Regulatory
Reform said the money guaranteed by the measures has been available since 14
January ­ the day of the announcement.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource