Govt finance scheme among options for small firms looking to expand

IN: Business news

It goes without saying that cash flow within businesses is essential to being able to expand operations and launch new ventures, along with the creation of new jobs and the overall success of a firm.

undefinedAnd in an attempt to make financial lives easier within some of the country's smaller firms, the government has been stepping up to the plate with a scheme designed to deliver finance to businesses.

The Enterprise Finance Guarantee (EFG) scheme, it was revealed this week (February 19th), has helped more than 10,000 firms get access to around £1.04 billion in loans since May 2010.

This has led to the creation of around 6,500 jobs in this time, saved another 12,375 positions and delivered a net economic benefit of around £1.1 billion to the economy.

Ministers believe that for every £1 given by a taxpayer, an additional £33.50 has been generated under the scheme.

Speaking about the scheme, business minister Michael Fallon said that banks could use it as a basis to increase their own lending.

"Enterprise Finance Guarantee loans are delivered through the banks, and I want to see them making more use of the scheme. This latest research shows that the EFG is helping precisely those businesses who can't get finance elsewhere. It is getting money to where it is needed, saving jobs, and delivering a huge benefit for the wider economy," he explained.

"Clearly the demand is there for this type of financial support so we must start to see an increase in take-up."

Aldermore already offers firms a flexible and powerful way to spread the purchase costs of assets across their economic life to ensure businesses can grow now and not later.

Around 60 per cent of the UK's small and medium-sized businesses use asset finance to fund investments, with single lending amounts anywhere between £5,000 and £1 million.

After all, why spend much-needed business capital now when the cost of expensive equipment can be spread over a longer period of time?

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