8.4 C
Lancashire
Sunday, June 16, 2024

Purbeck Personal Guarantee Insurance Responds to Inquiry into SME Funding

July 2023: Todd Davison, MD of Purbeck Personal Guarantee Insurance says: “At Purbeck Personal Guarantee Insurance, we wholeheartedly welcome the review and enquiry into the financing of SMEs. As a champion of small businesses, we want to see barriers to finance broken down.

“SME finance can provide an important lifeline for businesses trying to tackle the macroeconomic headwinds such as inflation, the cost of living crisis and rise in interest rates.  Access to responsible finance is critical to provide SMEs with the breathing space to get through this challenging time.

“Our response to the Inquiry will include the following recommendations and observations:

Financial Support for ESG Initiatives

There is currently a big focus on SMEs acting in accordance with strong ESG principles. We all understand the reasons why but the costs can weigh heavy on already cash-strapped operations.  Access to finance and flexible finance solutions should be considered for these initiatives. This would ultimately benefit the market and the economy as a whole.

Improved Awareness and Education

The myriad of SME finance options available for SMEs can be daunting when determining the best loan/finance facilities to suit their needs. There needs to be better education and awareness of the options available, calling on the expertise of commercial finance intermediaries/brokers such as the NACFB to help SMEs navigate for the best options available.

Faster Decisions by Big Banks

Access to finance from the larger banks for SMEs can be difficult and precious time can be wasted in pursuit of the facilities.  We would like to see decisions by the big banks expedited for SMEs so that they have the opportunity to explore other avenues if necessary.

Stress Testing Part of the Loan Process

The process of applying for funding should encourage SMEs to stress test their finances in the event of interest rates rises for example.

Forbearance Measures Made Clearer

With SMEs, cash flow can sometimes fluctuate.  Prior to taking finance, SMEs need to check what forbearance/assistance a lender would be able to provide in order to help manage cashflow and repayment obligations.  Policies on interest only repayments, repayment holidays and a clear understanding fees/charges in these circumstances should be provided up front in the application process.

spot_imgspot_img

Latest

Bespoke named Best Place to Work by The Sunday Times

Chorley-based digital marketing agency Bespoke has been named by the...

Sky Bet Bonus Code 50/1 England to Wear White – Get £50 Free Bets

New customers at Sky Bet this June, ahead of...

US Open: McIlroy and Cantlay share lead after round one

Rory McIlroy and Patrick Cantlay hold a share of...
spot_img

Subscribe to our newsletter

Business Lancashire will use the information you provide on this form to be in touch with you and to provide updates and marketing.

Don't miss

Childminder to be sentenced for killing baby in Hapton

A childminder is due to be sentenced on Thursday,...

Chief executive to leave Lancashire County Council

The chief executive at Lancashire County Council is moving...

Last call for Lancashire Artist of the Year 2024 entries

It's the last call for entries to the Lancashire...

Work begins on £1.5m annex to Greater Lancashire Hospital

Greater Lancashire Hospital has commenced building work on a...

More News

How to keep your banking details safe online

With online banking at our fingertips, it’s never been more important to safeguard personal and financial information. With cyber threats becoming more sophisticated and...

Xelix Unveils Helpdesk, a Gen AI Solution for Streamlined Vendor Query Management

Xelix, a leading provider of Accounts Payable and Procure-to-Pay software, proudly announces the launch of its newest solution, Helpdesk. Helpdesk is designed for enterprises dealing...

Fuuse Closes £8.7m Series A Funding Round to Accelerate EV Charging Expansion

Fuuse, the UK’s premier electric vehicle charge point management platform, has secured significant funding to fuel its next stage of growth across the UK...