The Bank of England has announced that the price of credit for small firms might increase in the final months of 2011. The coalition government’s Merlin Agreement with the banks does not appear to be working for firms of all sizes. Some banks are allegedly making lending decisions on a sector-based basis, instead of looking at the specific context facing the individual enterprise. The banks have confessed that they might not reach their target for lending to small businesses.
At Cooper Matthews we know that the lack of accessible and affordable credit for small businesses can have a significant detrimental impact upon their chances of making progress. Coupled with an unhelpful economic climate, it can make it harder for good businesses to make sustainable profits. If credit is obtained in today’s environment, it may be done in such a way that personal debt issues are made worse if things should go wrong.
It is common for small firms to need every opportunity they can get. If events turn against them, it is imperative that they obtain accurate advice fast. Business debt services can be of significant assistance in dealing with creditors. However, if an organisation does collapse then the directors may need help with personal financial problems.
Director finance advice is essential to minimise the damage incurred to the personal financial status of a director. In most cases, avoiding bankruptcy makes a great deal of sense. Business director debt can be dealt with, but it should be remembered that the issues are more complicated than those involved in sorting out debts derived from personal expenditure exceeding income.