Companies urged to assess credit needs

Tuesday, July 14, 2009

Lending needs force businesses to draw up detailed finance plans.

Small businesses looking for additional finance this year have been advised to present a clear repayment plan and outline uses for credit.

With many companies struggling to meet business rates and outgoing costs, it has never been so important to revise corporate planning and development.

John Grange, Business Link adviser, said: "My advice to any business looking for credit is to make sure you know what you want it for and to assess whether you really need it.

"Can you find that money within your business somewhere, like within existing stock or by managing your debtors and creditors better?"

Research from Close Brothers revealed this month that almost a third of small business owners are prepared to take out a personal loan to finance their business.

In June, the British Banking Association indicated that lending to small businesses by the high street banks rose by £287 million in April.

Source: ask-re The Property People LLP