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SEPTEMBER 2013 PRO INSTALLER
PRO BUSINESS
www.proinstaller.co.uk
HOW TO MAKE THE
BANK SAY “YES”
The Federation of Small Businesses (FSB) and the British Bankers’ Association (BBA) joined forces during Small
Business Advice Week back in September to give small firms clear advice on what they need to do to get a loan.
With independent
research showing that
around three in 10
small firms are refused
finance each quarter,
the two organisations
joined forces for the
first time to give their
top tips on what businesses need to do to
give them a better
chance of the bank
saying yes to their application.
John Allan, National Chairman, Federation of Small
Businesses, said: “The bank
will base their decision on
the information supplied to
them, so making sure that it
is robust is vital.”
The top five tips are:
1. Develop a robust business plan: A clear business
plan is key, not just to get
finance but for growing
the business too. The plan
should be a living document
that evolves as the business
grows and takes into account changes in the market
as well as the financial
situation of the business.
A well-thought, comprehensive plan will give the
lender confidence in the
projections made.
2. Build financial understanding: To have a successful credit application the
business must be able to
show they understand key
numbers such as turnover,
profits and existing debts
as well as being able to
show how the debt will be
repaid.
3. Check your track record:
When making a lending
decision the banks will look
at how previous lending has
been managed in the past so
knowing the credit ratings of
the business owner as well
as the business itself is vital
as is having an understanding of what affects it.
4. Be honest: Be upfront
about how much money
the business needs as well
as what it is needed for.
Underestimating how much
is needed may affect the
lenders confidence in the
owner’s ability to manage
company finances and
overestimating profits and
revenue could affect the
ability to repay.
Eurozone Out Of
Recession – But Still
A Long Way To Go
Lack Of Females
Studying Maths And
Physics At A-Level
The eurozone has emerged
from recession after a record
18 months of economic contraction.
The publication of exam results in the
UK reveals a marked difference between
the number of male and female students
taking maths and physics at A-level.
The bloc’s GDP grew by 0.3% in
the second quarter of 2013, slightly ahead of forecasts, the Eurostat
agency said.
The growth was widely expected
after the German economy rose
0.7% between April and June.
But the overall figure masks the
mixed economic fortunes among
the countries that make up the
17-country eurozone area.
Germany and France both posted
stronger-than-expected growth, expanding 0.7% and 0.5% respectively.
Portugal, among the smallest and
the weakest eurozone economies,
showed the fastest growth, at 1.1%.
The country was one of three that
had to take a multi-billion-euro bailout. But Spain, which had to seek
outside support for its struggling
banking sector, saw its economic
output fall by 0.1% on the quarter.
Italy and the Netherlands both saw
output drop by 0.2%.
European Commission Vice-President Olli Rehn said the figures
suggested the European economy
was gradually gaining momentum,
but added there was no room for
complacency.
“There are still substantial obstacles to overcome: the growth figures
remain low and the tentative signs
of growth are still fragile,” he said.
The Institution of Engineering
and Technology (IET) is warning
that economic prosperity could
be at risk if more students, particularly females, do not study
and successfully complete
these key enabling subjects.
Jayne Hall, IET Policy Advisor,
said: “Maths and physics are crucial
gateway subjects and vital to the
industry and economy as a whole.
With recent results from the IET’s
Skills & Demand survey showing
that only 7 per cent of the engineer-
ing and technology workforce are
women, action needs to be taken
at an early stage by encouraging
females into these subjects.
“Students are aware of the importance of A-level maths to starting
a career in engineering, but the
perceived importance of physics is
much lower.
“It is vital that we encourage more
students, particularly females, to
study these key enabling subjects.”
www.theiet.org
5. Keep talking: Communication with the lender and
getting feedback is important, as a ‘no’ now might
not mean ‘no’ in the future.
The lender should be able
to advise how to change the
business model to secure
finding and what elements
of the business plan could
be more robust.
For those businesses still
refused there is an independent appeals process, which
has been agreed by the main
UK high street banks.
John Allan continued:
“Businesses that are refused
finance can appeal the
decision. The latest figures
show that many firms that
do appeal have the decision
overturned.”
www.fsb.org.uk
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