Where do I go if the banks won’t lend money for my business? outlines the different options that can be accessed if banks won't give your business a loan. If you would like more business advice, to learn about the business courses that we offer or for more information on the services that we provide please call: 0121 707 0550 or e-mail: info@pathwaygroup.co.uk or visit: www.pathway2grow.co.uk

1. Where do I go if the
banks won’t lend money
for my business?

2. There is a great deal of news (& noise)
surrounding how easy or hard it is for
businesses to get access to finance to
fund their growth plans.
Research from the Federation of Small
Businesses (FSB) suggests that 40% of small
firms have been refused credit by their bank.

3. At the same time, the CBI states that while
lending levels in the economy are subdued
this is not just driven by banks unwillingness
to lend, but rather a combination of banks
assessing risk differently & demand for
lending being lower.
The argument being, that many businesses
are avoiding higher risk growth strategies
until they see greater economic stability.

4. So the picture on whether finance is
available or desired is mixed.
However, if we take the FSB research on
face value & say that nearly half of all small
businesses cannot get borrowing from their
bank, & they need that borrowing to grow
-where can they go?

5. There are a wide number of providers of
small loans (up to £50,000). In most cases
these providers require that you have been
to the bank first to evaluate the loan.
Loans

6. Organisations such as Arrow Small Business
Finance, Aston Reinvestment Trust,
Coventry & Warwick Reinvestment Trust,
provide loans up to £50,000 for businesses
in the region.
Other organisations such as Birmingham
City Council & the Prince’s Trust also
provide finance for small businesses
dependant on certain criteria.
Loans

7. Across the West Midlands there are various funds
available, which are managed by Business Angels
and venture capital organisations. These are
obviously looking for a stake in your business and
a return, but can often provide more than simply
the money, also the help and guidance you need
to grow your business.
Equity Finance

8. Good examples include Midven, who administer
the Early Advantage fund & the Exceed fund &
Advantage Business Angels who bring individuals
& businesses together so that finance &
experience come together.
Equity Finance

9. There are a number of grants available for small
businesses in the West Midlands. These are targeted
on exploiting high growth or attractive sectors for
growth in the region & are generally specifically
targeted to your sector, geographic location or more
recently if you are looking to create jobs or commit
to capital expenditure.
Grants

10. One such example is the
Business Development Programme,
administered by the Greater Birmingham
& Solihull LEP.
These grants can often involve match
funding where they are looking to you,
to invest at the same time.
Grants

11. Many business have heard all the noise &
decided that the bank will not lend to them
before they’ve even asked the question.
It is worth remembering that banks need
to lend – that is their main business!
So, before you dismiss it,
it’s worth finding out directly.
Your Bank!

12. For More Information/Advice
Call: 0121 707 0550
E-mail: info@pathwaygroup.co.uk
Visit: www.pathway2grow.co.uk/blog