BCC Survey Shows Surprising Findings About Business Banking

19th March 2009

Categories: Finance & Funding

90% Don't Know Their Bank Offers the Government's Flagship Scheme

A survey of 250 businesses by the British Chamber of Commerce has revealed some interesting findings:

90% didn't know their bank offers the Enterprise Finance Guarantee Scheme - a Government backed scheme that helps viable business access lending funds
12% say it's taking longer to get a decision on lending and 20% say their bank now requires more information than before
of the businesses that attempted to get a loan 31% were refused, 20% were offered a loan that didn't meet their needs and only 1 business actually obtained a loan under the EFGS

In addition the survey found:

Over a quarter (27%) said their demand for credit/loan facilities had increased compared to this period last year and only 5% said it had decreased
73% said it was taking longer to receive payment of invoices than before, with 25% saying it was taking up to a month longer
61% said late payment of their invoices was affecting their cash flow
of the 60% that had an overdraft, a third of these had seen fees rise
18% said their banking relationship affected their business positively, 15% negatively with the rest feeling it had little or no effect

To find out more:

DTI Business Support Solutions: 149 Kb; DTI guide to ways to support your business - both financially and with advice.
Taking Payments Factsheet: 85 Kb; This factsheet takes you through taking payments through cash, cheques, BACs and credit/debit cards both on and off line.
Code of Practice on Discretionary Tips and Service Charges: 25 Kb; Code of Practice on Discretionary Tips and Service Charges
Calculate your tax savings by trading as a limited company: 20 Kb; If you have profits of over £20,000 you could save money by trading as a limited company. This Excel sheet allows you to enter your profit figures and see the tax payable as both a sole trader and as a limited company.