How can my firm use the Funding for Lending Scheme to my advantage?
There have been a number of mixed reviews available on the relative success of the Funding for Lending Scheme. George Osborne and incoming BoE governor Mark Carney have both suggested that the scheme has attracted international acclaim recently.
However, some recent data appears to suggest that net lending from banks and building societies has actually been reduced since the launch of the scheme in August of last year.
The truth is that some firms will have been in a position to make good use of the commendable aspects of the scheme, while others may not find the scheme’s structure suited to their needs. Many companies could potentially be re-structuring, as part of a company voluntary arrangement for example, and simply don’t have the time to seek the one thing they need most in terms of new investment.
So, how can your company take advantage of the Funding for Lending Scheme?
A question of marketing
Knowing how to market your product effectively and efficiently will be of critical importance when attempting to attract the cash of banks and lenders. These institutions are likely to be no less critical than they normally would be when assessing whether a product or service is worth investing in, so ensuring that you use all marketing methods open to you is definitely a good idea.
It might be prudent to use any new funds gained from the Funding for Lending scheme to re-invest in an area of the business which has perhaps been stagnating. This injection may be all that is required to re-invigorate part of your business plan which has been neglected for some time, ultimately boosting your coffers.
Even if your idea fails to engender any investment from lenders, it never hurts to make new contacts. It may also be the case that a particular lender cannot see the long-term potential of your business at the moment but takes an entirely different view in 12 months’ time. Playing the long game is a potentially smart move in the current financial climate.
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