Even in a downturn, new revenue lines can be opened

Whether you’re a start-up business or an established firm looking for new expansion opportunities, the support and guidance of a banking partner can go a long way.

Many firms across Yorkshire have felt the impact of the uncertain financial climate of recent years. Naturally, this economic fragility has resulted in a reluctance amongst some to actively search for opportunities to grow – particularly by small and medium sized enterprises (SMEs).

The threat of a recession is often greater for smaller businesses as they lack the safety blanket of major cash reserves and large capital assets and so may have a more challenging time surviving the downturn.

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Granted, on the surface a recession is not an ideal time to start up a business. Low business confidence coupled with weak consumer demand does not lend itself to an encouraging environment in which to launch a new venture. However, certain lines of business, such as essential goods and services, do perform well, and as far as existing businesses are concerned, a downturn can be an excellent time to explore new revenue lines.

Bright spots continue to show through for business in the Yorkshire community, proving that a recession can bring with it opportunities as well as threats. This month’s Lloyds TSB purchasing managers’ index, for example, showed solid increases in both activity and new business across the region with the private sector experiencing its strongest growth in six months. The key to kick-starting any business growth or new initiative is the ability to invest, and so it is vital that Yorkshire SMEs ensure they secure a ready and reliable source of working capital.

This month Lloyds Banking Group announced the launch of their newest funding initiative, ‘Lloyds Funding for Lending’, which utilises the Government’s Funding for Lending Scheme. We are now offering reduced funding costs so as to support the growth and investment plans of UK businesses, and this is available to all SME and mid-market customers, regardless of the sector they operate in.

Access to finance plays a vital role when investing in your firm’s future. As part of Lloyds Banking Group, in the first six months of 2012 we provided £6.6bn of funding to UK SMEs, and have now increased our 2012 target for gross lending to SMEs to £13bn – a £1bn rise on the £12bn target we set at the start of the year.