Unique Client
Solutions takes a look at Vince Cable’s plans for a government bank designed to
increase lending to businesses. Do they think it will work?
In plans announced by
business secretary Vince Cable in the last few days, the government has set out
plans to create a bank with a £1bn fund to help to increase the amount of
lending to businesses. Unique Client Solutions understands that the £1bn pledged by the government is hoped to be matched by an
equal amount of private sector investment. The bank will operate via
existing lenders and is expected to start within 18 months.
As a business
specialising in customer acquisitions to a wide range of UK based clients, Unique Client Solutions has been well placed to watch the financial
difficulties faced by businesses, particularly of small and medium size, over
the past few years. A representative for the company agrees that lending to
small businesses has slowed to a trickle, “At Unique Client Solutions we have
seen many in our business community around Sheffield and Nottingham struggle in the
economic downturn. In particular they have been unable to secure the necessary funds from banks to grow."
Mr Cable has promised
to “get behind” successful firms looking to grow and Unique Client Solutions
hopes that this is a serious attempt by the government to halt the demise of
small businesses. Mr Cable believes that this is the first step to help get the
UK out of recession. In his address to the Liberal
Democrat Conference he said, “We need a new British Business Bank with a clean balance
sheet and an ability to expand lending rapidly to the manufacturers, exporters
and high-growth companies that power our economy.”
Does Unique Client Solutions
believe this to be a viable plan? “Any money that is being directed
specifically to the growth of SMEs is a step in the right direction. These are
very early days but the plans look positive. Mr Cable is right in believing
that the governments can sensibly with the right consultation “intervene and
support enterprise.” Banks are averse to risk understandably at the moment, we
hope that this will help to get funds to successful companies much more easily
to help them grow. Business banks like these have already been used with great
success in Germany, South Korea and the USA and we’re confident that the same
can happen here.”
