LEP in funding access call
Government-funded advice on access to finance should be offered to businesses in the Marches.
The call has been made by Geoffrey Davies, the chairman of the Marches Local Enterprise Partnership (LEP). He said small businesses are still struggling to access credit through the government's Project Merlin scheme.
He added: "Many businesses are turning to alternative methods of raising funds, with even large companies currently reporting they are having trouble accessing bank finance.
"SMEs have traditionally encountered problems when approaching banks and non-bank lending groups to support fixed capital investment and provide working capital for their operations. However, we believe there are steps which could be taken to help these enterprises, which make up around 90 per cent of the business landscape in the Marches."
The Marches LEP said it has sent recommendations to the Department of Business, Innovation and Skills, and offered evidence that both micro and small businesses still view banks as the main provider of external finance.
The LEP is calling for a government-funded service to give "micro and small businesses free and impartial one-to-one advice and support with accessing the finance they need".
Davies said: "We have also recommended that the government require the banks to provide appropriate lending facilities and reasonable notification of any changes within their terms and conditions, given that the banks are still the first port of call for companies."
The LEP covers Herefordshire, Shropshire and Telford & Wrekin.
