Help with business finances UK companies are the lifeblood of the economy. In the current economic climate we know that some companies are struggling to secure the finance they need, not because of any failure in their business but due to much tougher credit conditions. The following package of support measures is designed to improve access to credit and provide help with business finances. Freeing up bank lending: action behind the scenes The Government is working with UK banks and the European Investment Bank to maintain existing lending and make more available to small and medium-sized firms. The Working Capital Scheme will secure up to £20 billion of working capital credit lines for ordinary risk companies with a turnover of up to £500 million a year, so ensuring that they are safe from reduction or withdrawal. It will also free up capital which the banks must use for new business lending that would otherwise not be available. With the European Investment Bank, the Government has helped UK banks to negotiate credit lines of more than £4 billion in order to provide loans to small and medium‑sized businesses – £1 billion of which have already been made available. Enterprise Finance Guarantee Scheme If you have a business with an annual turnover of up to £25 million, you could get a loan of up to £1 million for a period of up to 10 years under the Enterprise Finance Guarantee Scheme. You can use the money to convert an existing overdraft into a loan so that you can free up the overdraft facility for other working capital demands. Barclays, Clydesdale/Yorkshire Bank, HBOS, HSBC, Lloyds TSB, RBS/Natwest and Northern Bank have signed up to this scheme, so if you apply for a loan from one of these banks you may be able to benefit from the Government’s guarantee. As with any other loan, your bank will decide whether to lend to your business, but the Government’s guarantee will mean that some businesses who might otherwise not have been able to borrow will be able to obtain a loan. The Government will be monitoring the implementation of this scheme. Regional loans If your business hasn’t been able to secure funding from the bank under the Enterprise Finance Guarantee Scheme, you may be eligible for a loan or other support from your Regional Development Agency. Our local Business Link (0845 6000 787) can advise on what additional financial help is available from the development agency in our region. Capital for Enterprise Fund Through this fund, viable small businesses with high levels of existing debt can get real help to raise long-term finance. Professional fund managers will provide equity investment which you can use to pay off existing debt, so as to free up capital for day‑to‑day cash flow and for investment for the future. The Government is providing £50 million of this £75 million fund, with the remaining £25 million coming from RBS, HSBC, Lloyds TSB and Barclays Call the Capital for Enterprise Fund Registration Helpline, 0845 459 9780 Need more time to pay your tax bill? If you are worried about paying your tax, National Insurance, VAT, PAYE or other payments to HM Revenue & Customs (HMRC) then you can contact the Business Payment Support Service. HMRC staff will review payment of your tax liabilities with you and try to come to an arrangement which allows you to spread payment over a period which meets the needs of your business and helps you over temporary difficulties. You won’t be charged additional late payment surcharges or penalties on payments included in the arrangement. But interest will still be payable on those taxes where it applies. Over 30,000 businesses have been helped to spread payments in this way, amounting to more than £500 million of tax. Visit Business Link or call the Business Payment Support Service, 0845 302 1435. Managing cash flow You can find short guides on managing cash flow, developed by the Institute of Credit Management and funded by the Government, at Business Link. The Government is encouraging all businesses to agree to pay suppliers on time. You can see which businesses have signed up to this at Prompt Payment Code. Central Government is also helping by committing to pay its own bills within 10 days Debt problems To get free, confidential and independent help to deal with business debt problems so you can successfully manage your way through financial difficulties, call Business Debtline, 0800 197 6026. Help with managing your business You may have to face some tough decisions, but there is real help available for your business to build on its strengths and to weather the difficulties. Health check for your business Get a free review of your business with a professional business adviser who can provide hands-on advice and help you access other government help, including all the schemes mentioned here To access a free health check for your business, call the helpline, 0845 600 9 006, or visit the Business Link. Alternatives to redundancy An interactive guide is available on the Business Link website to help you find alternatives to making redundancies. Advice includes guidance on consulting with employees and on how you can plan effectively for better job security. Dealing with redundancies It can be tough making the difficult decisions that affect you, your employees and your business. If you have to make people redundant, Jobcentre Plus helps people at risk of losing their job to start looking for a new one, even before they are made redundant, through online and telephonebased services. Visit the Jobcentre Plus website and select ‘Help with redundancies’ to find your local Jobcentre Plus contact. Recruiting employees From April 2009, you could get an incentive of up to £1,000 to recruit a person who has been unemployed for over six months, and access to inwork training for that person worth up to £1,500. More details of how to access this help will be made available shortly on the Business Link website. Staff restructuring and major change You can find guidance to help you with staff restructuring on the Business Link website. Solutions for Business Solutions for Business brings together and simplifies the range of support offered to businesses by government departments, their agencies and local authorities in England. Help with exporting Overseas customers and markets continue to offer your business real opportunities. UK Trade & Investment (020 7215 8000). advisers can help you access the right contacts and raise your company’s profile. They can also help you navigate the local business culture, regulations and logistics. Reduce waste and save energy Business Link can give you advice on how your business can save money at the same time as protecting the environment. An interactive tool is also provided to help businesses assess the areas where they are most likely to be able to cut costs, on the basis of their business activities. Help with investing for the future Businesses that invest during a recession often emerge stronger and more competitive than they were before. In fact, independent studies have found that companies that don’t invest in growth, training, research and development during a recession are two‑and‑a‑half times more likely to fail than those that do invest. Making the Skills Pledge Many companies now are making the Skills Pledge This public demonstration of the importance you place on investing in the skills of your people helps increase your employees’ confidence, motivation and productivity. Employers who make the Skills Pledge are also supported with impartial advice from the Train to Gain service Funding and support for training Train to Gain is the Government’s flagship service which supports employers in England, of all sizes and in all sectors, to invest in the skills of their employees. Specialist brokers can advise you on your business’ skills needs, the courses available, the most appropriate providers of training and the public funding available. There is specific government funding now available for small and medium‑sized businesses and voluntary organisations, including funding to retrain employees and for short courses – including on leadership and management – which have been proved to be useful for businesses Visit the Train to Gain website or ring 0800 015 5545 for more information. You can also contact your local college or university to find out how it is working with local businesses to provide training flexibly and easily, in order to ensure that the training offered fits in with the way your business works and can be tailored to your needs. HERO’s ‘University finder’ makes it easy to find your local universities and colleges and gives contacts for their dedicated business teams. Training support for apprentices Apprentices can bring many benefits to your business – increased productivity, improved competitiveness and a committed and competent workforce. You can get full or partial financial support for training up to the equivalent of A level Visit the Apprenticeships Service website or ring 0800 015 0600 Helping specific sectors Sector Skills Councils (SSCs) can give specialist advice and access to extra and more flexible funding to meet the needs of your specific sector, including for example the hospitality, construction, manufacturing, chemical, pharmaceutical, nuclear or engineering sectors Visit the Alliance of Sector Skills Councils website for SSC contacts Supporting business research and innovation To help your business take advantage of research and new technologies and processes, there is now greater assistance available from universities and research institutions, and a range of additional funding and support. Knowledge Transfer Networks and Knowledge Transfer Partnerships enable businesses to link with universities and research institutions to share and take advantage of research findings and new developments Visit the Department for Innovation, Universities and Skills Business Gateway website. Small and medium-sized firms can access real help through a web portal or by contacting their local Business Link adviser on 0845 600 9 006. |