Don't take no for an answer when applying for help from banks
SMALL businesses across Torbay are being urged not to take no for answer on vital bank lending.
Jackie Bligh, who runs TaxAssist Accountants in Torquay and Paignton, said: "Sole traders and companies in Torbay are among the victims of the £1billion shortfall in bank lending to small businesses but, for many, the door to vital funding could be opened by following some simple ground rules.
"If they have a strong business case, they should not take no for an answer."
TaxAssist Accountants is advising a number of local entrepreneurs on the financial planning and reporting tools they need to access finance in order to sustain and grow their business.
Jackie Bligh said: "Banker-bashing seems to be a national pastime at the moment, and it's right that pressure is put on the banks to support small businesses, which are the backbone of local economies.
"But there is also a great deal that business owners can do themselves to present a strong case and swing the lending decision in their favour."
TaxAssist Accountants has put together some top tips for Torbay small businesses looking for finance:
Work with your advisers to produce a clear business plan and cashflow forecast backed up by reliable evidence and a good track record
Banks will expect to take some form of security and see at least 30 per cent of your own cash injected into the proposal – if you do not have security available, enquire about the Enterprise Finance Guarantee Scheme
Show that the borrowing requested will be paid back and that it's enough to run the business and fund the owner's living costs
Never under or over borrow: under borrowers could be forced to go back to the bank within a year, cap in hand; over borrowers pay more in interest than they need to
Keep in touch with your bank and provide them with up to date information including good news and bad news — banks do not like surprises.
TaxAssist Accountants in Torquay, Paignton and Exeter is a local business itself, operating across Torbay, providing tax and accountancy advice and services to more than 700 small businesses.