Llanelli small businesses should not take no for an answer on bank lending, urges local expert

Small businesses across Llanelli are being urged not to take no for answer on vital bank lending.

Roger Bowen who runs TaxAssist Accountants in Llanelli said: “Sole traders and companies in Llanelli are among the victims of the £1 billion shortfall in bank lending to small businesses, but for many the door to vital funding could be opened by following some simple ground rules. If they have a strong business case, they should not take no for an answer.”

TaxAssist Accountants is advising a number of local entrepreneurs on the financial planning and reporting tools they need to access finance in order to sustain and grow their business.

Roger Bowen adds: “Banker-bashing seems to be a national pastime at the moment and it’s right that pressure is put on the banks to support small businesses, which are the backbone of local economies. But there is also a great deal that business owners can do themselves to present a strong case and swing the lending decision in their favour.”

TaxAssist Accountants has put together some top tips for Llanelli small businesses looking for finance:

• Work with your advisers to produce a clear business plan and cashflow forecast backed up by reliable evidence and a good track record

• Banks will expect to take some form of security and see at least 30% of your own cash injected into the proposal – if you do not have security available, enquire about the Enterprise Finance Guarantee Scheme

• Show that the borrowing requested will be paid back and that it’s enough to run the business and fund the owner’s living costs

• Never under or over borrow: under borrowers could be forced to go back to the bank within a year, cap in hand; over borrowers pay more in interest than they need to

• Keep in touch with your bank and provide them with up to date information including good news and bad news – banks do not like surprises!

TaxAssist Accountants Llanelli is a local business, operating across Carmarthen, Llanelli and Swansea, providing tax and accountancy advice and services purely to small businesses.