Small Business Advice | Banks join forces to lend to businesses

The British Banking Association (BBA) has announced plans to form a new taskforce in a bid to stimulate lending to UK businesses. The group, lead by Stephen Green, head of the BBA, has sent a letter to George Osbourne outlining plans to form a group to discuss how the banks can improve businesses’ access to funds. The group will also investigate what changes can be made to create a stronger financial market for business. To read the full story, visit the Growing Business website.

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Small Business News | Cash-strapped entrepreneurs get creative

Small Business News | Cash-strapped entrepreneurs get creative

A recent BBC article discusses the problem of finance for cash-strapped entrepreneurs looking at a new generation of online funding platforms.

In order to get new ventures off the ground these online platforms, such as Kickstarter, cater for everyone from starving artists to tech start-ups. They also allow anyone with a business proposition to post an online pitch which goes straight into the offices and homes of potential investors and donors across the world. Although there is no limit on how much people can raise, creators of the projects must take a Dragons Den style approach and set a cash goal and a time limit. If they reach the goal within the time limit they get to keep the pledges. If they don’t, all pledges are returned. Alongside the ability to gain funding, young entrepreneurs receive feedback on their products and plans and well as having the added bonus of a readymade group of potential customers. So far 650 projects have been successful and pledges have come from 70,000 people globally.

To read more about this scheme please visit the BBC website.

Small Business News | Bouncing Back From Bankruptcy

Many small businesses can’t sustain the current pressure and have become victims of the recession, that is according to an article in Management Today. The article assesses different ways in which people and businesses can bounce back from bankruptcy and give recommendations on how to set up a new business, post-bankruptcy.

For the full story, please visit Management Today

Small Business News | OFT to review barriers to new banking entrants

The Office of Fair Trading is set to undertake a review of barriers to entry, expansion and exit in the retail banking sector according to Money Marketing magazine.

The review will look at obstacles that are holding back new entrants and preventing smaller banks from expanding. This includes:
• Regulatory requirements, including obtaining authorisation from the FSA and capital and liquidity requirements
• Access to payment systems and availability of credit risk information
• Barriers to achieving scale such as developing branch networks and customer inertia
• Barriers to exit and aspects of the operation of the Special Resolution Regime

For the full article, visit the Money Marketing website.

Small Business News | Turnover Reaches New High

Despite a challenging start to the year, small business turnover reached a 29-month high in March 2010 according to new research out today. The Index for the first quarter of 2010 ended on a high of 108.1 – a level not seen since October 2007.

The study from Bibby Financial Services also showed almost two thirds (62 per cent) of businesses surveyed do not anticipate real economic improvement for at least another 12 months.

To read the full article visit Fresh Business Thinking.