UK Businesses Still Ignoring Small Firms Loan Guarantee Scheme

    WEST SUSSEX, ENGLAND, November 29, 2008 /24-7PressRelease/ -- Yet despite the positive feeling around the scheme, of those accountants surveyed, none had clients currently using the scheme.

The SFLG provides up to 250,000 for companies with minimal business assets or a lack of security, making it a vital resource for many businesses. In April the Government announced major changes to the rules around the SFLG Scheme. The previous 5-year rule is no longer applicable to new loan applications making the scheme open to many more businesses with a turnover up to 5.6m. The Chancellor also announced a 60% increase in SFLG funding available.

Despite these changes that work to the benefit of UK businesses, it seems that there is a still a huge proportion that are unaware of it. More than a third (36 per cent) of the accountants surveyed did not know about the scheme or the benefits it could deliver to their clients, suggesting that there is still has a lot of work to do in educating people of its existence.

Peter Ewen, Managing Director Venture Finance comments: "As the first independent invoice financier to be authorised as a lender of the SFLG, we have witnessed firsthand the positive impact this injection of funds can have on a company. Given the benefits that the SFLG can deliver, and the recent improvements that have been introduced, it's disappointing that so many still don't know about it.

"17 per cent of the accountants we spoke to are already recommending the scheme and it would be great to see this figure grow. As one of the key sources of financial advice to businesses there is a real opportunity for accountants to play an important role in providing unbiased guidance on funding options and support throughout the SFLG application process."

Venture Finance are an independent factoring, invoice finance, invoice discounting and Asset Based Lender with 18 years' experience.

For more information on Venture Finance or the Small Firms Loan Guarantee please visit www.venture-finance.co.uk/sflg

# # #