Warn Government is right on the banks of small business loans?
News recently that the Business Secretary Vince Cable said that banks should be "very, very conscious" of how to pay, for employees and investors "for the half year results, which most banks recorded a healthy profit returns. High
meeting you cable is to include a commitment to banks to support small businesses and increase the amount of loans they make. Banks come under much criticism from the government and trade organizations such as the FSB and the Chamber of getting credit moving again, albeit in a responsible manner and Business Secretary warned that failure to do so may result in penalties.
press reports on that such ~ penalties may be more of a super tax on their profits and bonuses that have been under scrutiny in the face of a significant recession. Given that high street banks in reporting its first half figures put forward £ 5bn Total the amount of the premiums and payments
pool for Barclays, HSBC and Royal Bank of Scotland Bank bonuses seem to be headline news again.Interestingly recent report from Reuters News found that, despite the super-tax, bankers, Wall Street-based weapon of foreign investment in UK based not escape the UK, as well has been reported pre-tax, banking brain drain. No such exodus occurred.
Does the government flexes his muscles flexing, and whether there is too much for the banks, or is insufficient for the public, remains one indisputable fact. UK Small companies are still below are provided within the available funding.
UK late payments, continue to cause, and enterprises continue due to failure despite the late payment of hypocritical Prompt payment code. Cash flow is still a matter for small businesses and no responsible finance expansion, the firm's survival, nevermind growth is strongly at risk.
When you consider that the figure was 99.3% of all UK businesses are SME's (small and medium-sized enterprises)
fewer than 50 employees big question is can we afford to not support them?The UK banks transfer the stress of current research and apparently benefiting from reduced demand for the recovery of commercial debts for the "toxic debt" of copies thereof by the Government can only believe that as banks start to recover their balance sheets and profits, so there will be support for SMEs . At the same time to return to the reckless lending Existing desirable, it has very few people do not think banks have expanded the position to further than is necessary.
With banks less in the form of loans, overdrafts, predictions are coming through thick and fast that more companies will hold the funds longer, and thereby increase the amount of overdue payments shall, thus putting more strain on small businesses through increased debtor days. If credits are not available, the incidence of business failures is likely to increase during the slow recovery as fewer and fewer companies have enough cash
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