‘Postcode lottery’ for gaining finance

THERE exists “a postcode lottery for obtaining business finance”, it was claimed yesterday, after figures highlighted the difficulties the region’s small firms face in securing funding.

By The Newsroom

Published 2nd May 2013, 09:57 BST

The Business Taskforce report showed that 29 per cent of small businesses in Yorkshire and Humber were offered the funding they wanted from the banks and took it.

Chris Glen, West Yorkshire regional chairman of the Federation of Small Businesses, said: “Whilst it is good news that 62 per cent of small firms in the North East and 72 per cent of Scottish firms have been granted the finance they applied for, there is a significant imbalance in bank lending across the UK and Yorkshire and Humber firms have a clear disadvantage.”

He added: “These figures reflect the stark reality that finance isn’t reaching the businesses that need it. Many business owners are unaware of the help available, such as the Funding for Lending scheme.

“Less than half of the businesses that want finance can actually get it and the location of the firm seems to have a bearing.”