Business News

16 November 2011 Small business group welcomes new 'Finance Fitness' scheme

The Forum of Private Business (FPB) has welcomed the Government's new Finance Fitness initiative, which aims to improve the finance and cash flow issues faced by small businesses.

The Government recently announced a new business growth package for SMEs which includes the Finance Fitness campaign, aimed at improving access to finance for SMEs, together with a £95m investment from the Regional Growth Fund to support SMEs looking to invest in new capital assets, which will be facilitated by a number of High Street banks on a pro-bono basis.

The Finance Fitness scheme will offer advice and best practice guidance on cash flow management and accessing different sources of finance.

However, the business group has warned that banks will need to deliver on their pledge to increase lending if the scheme is to make any real difference to firms.

The FPB is also calling for firms to be proactive, by providing thorough financial projections and accurate financial information to lenders.

Alex Jackman, FPB Senior Policy Adviser, said, 'The Forum is still calling for greater collaboration between banks and businesses and a return to proper relationship banking. This would help ease the punitive risk criteria lending we have seen in recent years, and subsequently bring down lending costs'.

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