Businesses 'should benefit from banking scheme'

19 March 2012

Businesses across Britain are set to benefit greatly from the introduction of a new bank lending initiative.

That is according to Phil McCabe, media and PR manager at the Forum of Private Business (FPB), who believes the National Loan Guarantee Scheme (NLGS) will provide a much better financial environment for companies.

Following the global economic downturn, firms have found it increasingly difficult to access the cash they need to invest and grow in a difficult situation as the majority of banks have tightened up their lending criteria.

However, the government has pledged to pump some £20 billion ($31 billion) into the NLGS to improve this area of the market and it recently emerged that EU approval of the initiative is imminent.

And Mr McCabe claimed that in principle, this development is "extremely welcome".

"The important thing is that it's got to work ... The banks need to provide a better service," he noted.

By Gary Cooper

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