A Shropshire accountancy firm is backing a national campaign calling on the Government to listen to “common-sense” advice about the economy.
Dyke Yaxley Chartered Accountants, in Shrewsbury, has joined forces with other members of The Corporate Finance Network to lobby the Coalition on behalf of small and medium-sized businesses.
Chairman of the Network, Kirsty McGregor, has issued a challenge to Downing Street to listen to her common-sense advice to solve the economic problems and funding issues these businesses face.
The Network’s view is that the newly-announced Funding for Lending Scheme won’t boost the economy because it focuses on targeting banks to lend more, which they are unable to do thanks to the retrictions they face. They say it’s just another scheme doomed to fail, as it does not tackle the real issues faced by SMEs today.
Mark Bramall, from Dyke Yaxley, said: “The lending environment has changed forever and trying to fix problems with old solutions of traditional lending just won’t work any longer.
“The Government need to look at completely different approaches if they want to boost the economy and help small and medium-sized businesses. The Corporate Finance Network has suggestions of its own which we believe will make a real difference as they are a refreshing change to what has gone before.
“Coupled with our more innovative way of looking at a business’s funding requirements, we can help provide the stimulus that the country truly needs.”
The Network believes there should be a tax break available to anyone purchasing an existing small business as many in this sector are underperforming and need consolidating.
“An ageing business owner population also means an increasing number of businesses are winding up and they are less likely to sell to large corporates who are now more risk-averse,” said Mark.
“We also want to see more transparent lending contracts with a new medium term overdraft provision as currently most overdrafts are renewable each year which isn’t long enough for a business owner to feel secure in their facilities.
“And we’d like to see the Government use any interest rate incentive schemes for less traditional financiers – lenders such as invoice discounters, asset financiers and Crowdfunders can’t currently access these schemes as they are only open to banks. But these new lenders are fast becoming the most active in the marketplace, so aiming a scheme at them will be much more effective.”
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Dyke Yaxley’s Mark Bramall