Two pieces of good news for businesses in two days - we can make it a hat trick
The Funding for Lending scheme has been tweaked and extended - and there's no triple-dip recession - it's good news for businesses, right?
The sun has been shining - and maybe some of our business customers have found further cheer in two pieces of news from the past two days.
The first is that chancellor George Osborne announced a year-long extension to the Funding for Lending scheme (FLS) and a revamp that means the scheme is now more geared towards helping small and medium-sized businesses get access to finance. The FLS will now run until January 2015 and banks lending to small businesses are being offered 10 times more access to low-interest funding.
More credit at fair rates
The expectation is that banks and other lending organisations will approve more business finance applications at interest rates that reflect the reduced cost of the funds. Businesses should also be encouraged to look beyond the high street for credit because the FLS is also being opened up to non-bank lenders such as leasing companies.
We know that many businesses don't need external confirmation that times are tough - which is why we're so keen to bang the drum about what we can do to help
It is well documented that small and medium-sized businesses have suffered tremendously during the credit crunch, but it seems they could now be set to benefit from a scheme that was previously skewed towards home loans. Coupled with the business bank that's being launched by business secretary Vince Cable, the finance outlook for businesses is looking decidedly more rosy.
At least we're not triple dipping
This chimes nicely with the other piece of good news, which is that the UK economy has grown by 0.3% in the first quarter of 2013. This means we're officiallynotin the midst of an unprecedented triple-dip recession.
Okay, it may be overstating things to call this good news, but itisnews that's much better than it could have been. Above all it's a sign that things are gradually improving, but the GDP is still 2.6% below the level it was at before the financial crisis in 2008. To put this into context, a healthy economy grows by 10-12% over a five-year period - so it's clear that we're still living in challenging times.
Indeed, we know that many businesses don't need external confirmation that times are tough - which is why we're so keen to bang the drum about what we can do to help. It's as important as ever to run as tight a ship as possible - and we can help businesses do that with a service that guarantees to reduce your indirect cost base for no outlay whatsoever.
So, we've got the week's third piece of good news for your business because we can add a lot of money to your bottom line in a single phone call - but we can only tell you exactly how much it if you grab a utility bill and get in touch.
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