Stating the obvious
In an article in the Daily Telegraph, 28th May 2013 Susan Allen, chief exec of RBS’s asset finance arm states that a Lombard survey has found that a lack of awareness of asset finance is causing a loss of potential business to SMEs in the UK to the tune of £5.4billion.
Well said Miss Allen but with the restrictions banks put on the size of deals, the types of equipment they are prepared to fund and the lack of appetite for start-up businesses, the banks are not in a position to address the lack of support for SMEs.
If the government, the financial press, accountants and the banks were serious about moving the economy forward they would find no shortage of asset finance lenders prepared to meet the need of this major market. These lenders would also improve levels of capital investment.
Most asset lenders are free of the constraints imposed on the banks and are able to respond to market demand with speed.
It’s the clout that the government and banks have with the media that could highlight the alternative sources of funding that the business community is unaware of.
One wonders why, when the whole country is aware of the problem, that no major institution is regularly pointing the way to the solution.