Car dealers ‘abandoned’
June 29th, 2009 by Richard Aucock
GOVERNMENT attempts to stimulate bank lending to small and medium car dealers have failed, says one expert.
Clifton Asset Management boss Anthony Carty said that stimulation of bank lending through the Enterprise Finance Guarantee haven’t worked.
‘That 89 percent of business owners say they do not see any benefit in applying for support under this scheme provides damning evidence that they continue to feel abandoned in their hour of need.
‘In fact, a third of our respondents were not aware that this much-heralded scheme even existed.
‘A paltry 1 per cent say they have been able to access the crucial finance they need to help them through the most difficult economic climate for several decades.’
Pretty comprehensive evidence that the scheme hasn’t worked.
However, Carty did point to more encouraging views on Lord Mandelson’s BERR department. A third reckon various measures prove the Government does understand the importance of owner-managed businesses.
Last year, the figure was just 4 percent…
Even so, there was no hiding Carty’s frustration. ‘It is totally unacceptable that so few businesses have received any kind of financial relief via the Enterprise Finance Guarantee, or that so many have no confidence in its ability to deliver.
‘We know, from our own experience, that accessing the scheme is proving hugely frustrating for many SMEs – and that, despite the Government’s protestations, the freeze in bank lending to businesses shows no signs of a significant thaw.’
Survey wants independent voice
Tags: berr, enterprise finance scheme, government
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