A Cornish firm of independent financial advisers has produced a guide to offer support to businesses wanting to unlock finance from the Government’s new small business loan plan.
Truro and Wadebridge based Worldwide Financial Planning have created the document after an increase in enquiries from local companies wanting to know how they can benefit.
The three schemes, Working Capital Guarantee Scheme, Enterprise Finance Guarantee Scheme and Capital for Enterprise Fund, have been introduced in a bid to offer support to businesses affected by the credit crunch.
“We believe the introduction of these schemes by the Government will have a positive effect for businesses in Cornwall,” said commercial finance adviser Jeff Lenihan.
“In terms of boosting business in Cornwall the main one will be the Enterprise Finance Guarantee Scheme.
“This is a considerable extension of the Small Firm Loan Guarantee Scheme and is targeted at SMEs, which covers 85% of businesses in Cornwall.
“The Government will guarantee 75% of loans between £1k and £1 million, so where banks have been reluctant to lend this will offer them an incentive to create new loans, replace existing loans and help with overdrafts.
“I think it’s a very positive step for business as it will provide an immediate injection of working capital by allowing businesses access to new finance facilities.”
And with all major high street banks eligible to provide facilities through the scheme, Jeff believes now is a good time for businesses to see what support they can get.
“The truth is that if banks and other lending institutions are approached correctly with the right package most will still lend.
“But you need to be prepared and by using our guide or by talking to a business adviser businesses will be better prepared on how to approach the banks.”
