Plan to back £10bn business loans

[Win2Win Racing]

Chancellor George Osborne is to unveil a government scheme to underwrite at least £10bn of loans to small businesses.

More... (http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-15907249)

[Win2Win]

It's hard enough these days trying to arrange a business overdraft for a few hundred quid never mind getting a loan :ermmm I know a lot of small companies struggling with cash flow.

[barneymather]

What's been unbelievable has been banks snottily refusing to lend businesses money. Several of these banks wouldn't even exist if it wasn't for taxpayers' money bailing them out, therefore the government must make it clear to these banks that paying loans back is only part of the deal, as they must also lend to viable businesses.

It wouldn't surprise me in the slightest if the banks used the excuse of having to be careful who they lend money to in the current climate (even though I suspect traders will be up to their old casino banking tricks), but considering the insane risks these banks took which saw them almost go under, the government should give these weasel excuses short shrift.

Even those banks who didn't require a bailout should receive a little arm-twisting to persuade them to loosen the purse strings, as getting the economy back on an even keel is more important than short-term profits. Bank executives may squeal, but they have to realise that although they have a business to run, they do not exist in a vacuum. What caused the chaos in the banking system in the first place was the government taking far too much of a hands-off approach to supervising the activities of major banks.

[Win2Win]

A friend of mine who turnsover about £80,000 a year running an Ebay business wanted a loan to expand. This was a dead cert bet as they just can't keep up with the orders and have a 2-3 days a week when they don't advertise anything so they can take care of the orders they have yet most banks wouldn' offer them a loan and one that did wanted 17% interest :crazy: