Guide to Property Finance
|
|
Bank of England believes that the rise in the number of self-employed people might slow down the growth of the UK economy. Perhaps, they are at some or the other level right but for the reasons which the Bank and the financial regulators have created. As per the statistics, self-employment saw a rise of about 8 per cent in the last quarter and the UK is said to be the ‘self-employment capital of Western Europe’. Napoleon said, “The English were a nation of shopkeepers.” That statement in the current scenario can be deemed to be extremely farsighted. These “shopkeepers” are an enterprising bunch who are flexible enough to not claim every ounce of state benefit they can get their hands on. They tend to put in all the assets they have got on the line. The question is, what support do they get in return?
For this purpose, the UK government has come up with a bunch of ways to get funds to small businesses, especially through Regional Growth Funds, contributions to crowd funders as well as the higher profile programmes. It is easy to criticise such schemes and initiatives but they have helped or are still helping people and businesses on some level. What have the lenders done to help? To be honest, nothing! The other banks are doing the same and the crowd funders are said to be doing their best. Perhaps, like many crowds they are said to be making a lot of noise while not achieving anything great. On the other hand, the high street banks are doing nothing, not even offering any real assistance to the owner managed businesses which form the vast majority of employers. High street banks are usually encouraged moreover forced, not to lend by the preoccupation of the Bank of England and the financial regulators with affordability or serviceability. Thus, this is where the economy is said to have slowed down. On the commercial front there is greater lack of enthusiasm to lend to newcomers going into existing businesses such as pubs, shops or investment property unless they have experience in the sector. This is regardless of how the business is doing now and resistance to lending until the applicant has two or three years of good accounts under their brand name. Start-ups are even more underprivileged.
0 Comments
Leave a Reply. |
AuthorJack ArchivesCategories |