There are 'options' to credit a new business

19/07/2010

Even though the options are limited, there are alternative ways for people setting up new small and medium-sized enterprises (SMEs) to obtain credit, apart from using banks, according to SmallBusiness.co.uk.

Writer for the website Kathleen Hall said: "If you are a start-up looking for a loan, the chances of obtaining one without having to put your house on the line is slim to none. However, there are alternative routes such as credit unions or Community Development Finance Institutions."

New research from PayPoint.net has revealed that more than half of Britons have considering starting their own SME.

The main reasons they have chosen not to do so are the high start-up costs and administrative demands, among other concerns.

If it were easier, some 62 per cent of Brits would set up their own SME, the research showed.

According to Ms Hall, now is as good a time as any to set up a new business.

"Lots of successful companies such as Microsoft, Burger King and The Jim Henson company were founded during tough trading conditions. It can create good opportunities for businesses able to spot new gaps in the market."

Posted by Tom Barnett