The government has announced a £21bn plan to
help small and medium-sized enterprises, with loan guarantees to
try and inject capital into otherwise healthy companies which are
suffering from a lack of liquidity.
help small and medium-sized enterprises, with loan guarantees to
try and inject capital into otherwise healthy companies which are
suffering from a lack of liquidity.
The motor industry gave a guarded welcome to
the plans. BVRLA chief executive John Lewis said: “Having this
level of support underwriting business loans will hopefully help
reassure any nervous funders that our members may be dealing with,
although vehicle finance is one of the most secure forms of lending
as it is.
the plans. BVRLA chief executive John Lewis said: “Having this
level of support underwriting business loans will hopefully help
reassure any nervous funders that our members may be dealing with,
although vehicle finance is one of the most secure forms of lending
as it is.
“We shouldn’t forget that the sale and leaseback deals being
made by our industry are helping to inject millions of pounds of
much needed working capital back into small and medium-sized
businesses up and down the country.” However, he said, the size of
the stimulus would “probably need to be raised, perhaps as high as
£50bn”.
Sue Robinson, director of the RMIF’s National Franchised Dealers
Association, added: “The government’s guarantee for bank lending to
small and medium sized businesses should enable businesses to
survive the downturn, but more must be done to revive consumer
confidence.”
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