How to get funding for your business
Getting money from banks to fund your small business is getting tougher.
The British Banking Association says demand from small businesses is falling - but we’re hearing another story from readers desperate to land the funds they need to succeed.
The Community Development Finance Association could be the place to head. It’s a national network of non-profit “alternative banks”, which lend to businesses turned down by high street banks.
Unlike banks, community development finance institutions have a social goal - they recycle all the income from their lending to generate more loans to struggling local businesses.
Most work in deprived areas with a mission to help those who may miss out on financial help because they lack collateral, have a poor credit rating or can’t show a business track record.
Bernie Morgan, chief executive of the CDFA, says: “The banks have been resisting calls to increase their lending to small businesses because they say the demand isn’t there.
“Many members tell a different story. Small businesses are beating a path to their doors because banks don’t want to lend or suddenly change the terms of their loan.”
To find a CDFI in your area visit http://www.findingfinance.org.uk, put in where you’re based and the type of loan you want, and the site finds the nearest and most appropriate for you.
For a CDFI loan, you have to provide documentation showing a bank has declined you. You need have a business plan, or at very least, a viable, well thought out proposal.
Article taken from the daily Mirror 29/9/2010 - see http://www.mirror.co.uk/advice/money/2010/09/29/how-to-get-funding-for-your-business-115875-22595219/
