Small firms are 'unaware of their options'

Date: 24th October 2011

The UK's smaller businesses are unaware of their options with regard to finance.

That is according to a new bank, which pledged to make £250 million worth of small business loans available next year.

Stephen Johnson, new business director at Shawbrook Bank, said that there are many obstacles preventing small firms from finding appropriate finance options, adding that it can also be a lengthy process.

The expert claimed that people often think of just their high street bank and if they are turned down, assume this will be the result at the other big banks.

"There are other funding opportunities out there. A big job to do is to try and raise some awareness that there are other options out there rather than just the high street banks," he commented.

Shawbrook's lending pledge comes as the Royal Bank of Scotland announced a new scheme, which aims to lend £5 million to businesses that would normally struggle to access a bank loan.

Posted by Emily Smith