I
have written twice on the subject of the current Funding for Lending scheme,
once to express cynicism and then a softening of that position giving some
benefit of the doubt towards the major clearing banks.
I
have now noted two pieces of news:
The
scheme is reported as being responsible for banks launching competitive
mortgage deals aimed at borrowers with small deposits.
The
scheme is also reported as being responsible for recent cuts in interest rates
on personal loans ranging from between £3,000 to £4,999 for one bank and
between £7,500 and £14,999 for another.
So,
we have the situation where participating banks are drawing down money against
the scheme to fund cheaper mortgages (which I predicted) and personal loans
(which I didn’t expect).
What
can I suggest for my fellow small business owners who want a small loan to
develop their business? If you are a Sole Trader with a good credit record you
might be able to get a personal loan - but you had better say it is for a retirement
party and not mention it is to try and develop your business so you can employ
people on Job Seekers Allowance at the moment.
If
you are a small private company – keep whistling!
Posted on behalf of Keith Powell.
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