Home > Uncategorized > Osbourne to help banks to help SMEs. Maybe…

Osbourne to help banks to help SMEs. Maybe…

Budget box

Unfortunately i cannot link the story which is behind the Times paywall but in essence it is expected that this weeks budget will include proposals to instruct banks to advise SMEs of alternative forms of lending, if refused for a loan

All well and good but how will the borrower know that they are being advised the best option?

The banker will possibly have no real interest in whether they receive the funding or not and is unlikely to scour the market for the very best option. Funding is not of course just about access. Anyone can borrow but at what cost and on what terms?

No advice is better than bad advice

Naturally you can probably see where I am coming from here and maybe im being a little too cynical about the banking world but it is understandable that if the banks have not been incentivised down this route already, then an “instruction” from the government isnt going to make a lot of difference

Brokers operating in the same manner as myself have to find the very best arrangement for an SME. That is how we survive. There are numerous options in the market and funding is a long term arrangement which can make or break a business. 

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