4R Blog

RSS Feed

Business lending scheme launched in Lancashire

Date Added: 13/11/2012  

Firms based in Lancashire may be set to see improvements in business lending as a result of the launch of a new scheme in the north-west of England.

A new partnership between Lancashire County Council and online lending marketplace Funding Circle has led to the creation of the country's first Local Business Lending Partnership.

James Meekings, co-founder of the Funding Circle, explained that companies are increasingly "waking up" to the business lending options available away from high street lenders.

Speaking to the Lancashire Evening Post, he said: "If you go back ten years, a business could secure funding from a bank knowing they would get the money, now they cannot be so sure. Banks are only one source of funding and without funding a business does not have the oil to run its engine."

Lancashire County Council has put up £100,000 of its own cash to guarantee 20 per cent of the funding required by firms from the county for the programme.

Companies interested in joining the scheme then bid on an online marketplace to win backing from thousands of investors all over the world.

Dave McDonald, managing director of Chorley-based Poppy Signs, explained the organisation was able to borrow £30,000 through the business lending scheme earlier in the year and as a result it is going to be able to create two new jobs.

He stated he would not criticise banks as they have provided the firm with support in the past, but claimed using Funding Circle's business lending idea has given the company an edge.

Michael Green, the local authority's cabinet member for economic development, stated more money could be put into the scheme if the initial pilot proves to be a success.

According to a recent study from the Ernst & Young ITEM Club, business lending figures in the UK are going to be almost five per cent down in 2012 on the data recorded last year.

Need advice on Winding up Orders? Call 0800 9020123

Posted by Michael Beam

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback