A new scheme is to be put in place, after the approval from the European Commission confirmed that banks will be lending more money to small businesses and contractors.
The National Loans Guarantee Scheme will be launched this week, in order to help contractors and small businesses to thrive in the current economic climate.
The scheme will allow those whose turnover is less than £50 million, to be eligible for lower cost loans. However, not all banks will be able to take part in the latest proposal, as their small business lending records, which will be assessed, will be the determining factor.
Both the government and UK banks will need to be as up-to-date and fully aware as possible with the National Loans Guarantee Scheme, so that these small firms will have all the information they need to be put forward for a reduced loan.
John Walker, national chairman of the Federation of Small Businesses (FSB), said, “Recent FSB research indicated that around 60% of small firms believed that credit is unaffordable and so this scheme should help reduce that burden.
“What we now need to see is clear communication to small firms and bank branch staff so that everyone is aware of it, and how it will work, so that businesses can benefit from it.”
This is a positive time for those freelancing – with this scheme plus the recent Professional Contractors Group campaign, which has been set up to defend the legitimacy of freelance businesses.