Business Enterprise Scheme

[chrissa1]

Has anyone applied for the Scheme and been succesful? It appears that you have to apply to your bank to be considered. However, if your bank is not particularly well disposed to your business, they are hardly going to fall over themselves to help, even though any loans are guaranteed by the Government.

Any thoughts would be gratefully received. Chrissa1

[Jonathan 56]

My bank (Barclays) offered it for my small business. They wanted personal guarantees backed by unencumbered assets to a value of about three times the total loan, including the government-guaranteed part. They explained that they are required to use normal banking criteria and that they are applying these to the entire loan. In other words, there is absolutely no chance of this scheme doing what the politicians claim and enabling credit to small businesses that wouldn't otherwise get it.

[chrissa1]

Wow!! Thanks for that Jonathan. Been there, done that, got the T shirt. What a travesty and what w**kers all these bankers are!

I honestly thought this scheme was a great idea by the government, and would really help us small businesses, but as usual, we are still expected to take all the risks with no help whatsoever.

Nothing changes does it? I'm gobsmacked!!

But then, I shouldn't be should I?

[chrissa1]

Having thought a bit more about your answer jonathan, I thought this scheme would be ideal for us as we are hard up against our overdraft limit for the next month or so and thought that this would release some of it to be guaranteed by the government, thus releasing the bank's exposure. But having read your post I think we are better "keeping our heads below the parapet" as we've read of banks calling in overdrafts nilly willy.