Could the BoE’s cheap credit scheme be precisely the boost SMEs need?

The government is making yet another attempt to do what they can to facilitate UK SMEs as they attempt to drive the economy forward.


Approximately £20bn is set to be made available under the extended Funding for Lending Scheme (FLS) in a bid to boost lending and encourage SMEs to increase their contribution to the overall economy.


Small business lending has stalled in recent times and this has meant that the contribution made by SMEs to the wider economy has also stalled.


The threat of the ‘triple-dip’ recession


The added boost for SMEs comes in a week where we expect to hear an announcement that the UK has only narrowly avoided falling into a triple-dip recession when the latest GDP figures are announced later this week.


An anticipated growth forecast of 0.1%, a view taken by a poll of 51 economists which was organised by Reuters, will mean that the UK has avoided another humiliating financial fall.


So, is this latest boost set to propel the economy forward on the back of an SME-inspired surge?


There is no doubt that the government is investing a significant amount in the small business sector in an attempt to encourage wider growth. There is a sound basis for believing the financial boost could have a genuine long-term effect.


Business restructuring specialists


A number of businesses may find themselves in a financially distressed situation in 2013 as numerous economic indicators suggest the remainder of the year could present obstacles for companies across the UK.


Seeking advice from a company insolvency specialist could make a crucial difference in terms of how your company deals with the situation, companies such as this can provide practical solutions to numerous financial problems. 


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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