EBA Consulting Ltd

“Do not condemn the judgement of another because it differs from your own. You may both be wrong.“ Dandemis

Tel: 01554 890300

SFLG Review

Through the Small Firms Loan Guarantee (SFLG) banks and other financial institutions offer loans of between £5,000 and £100,00 (£250,000 if your business has been trading for more than two years) providing the business has a viable proposal but has failed to get conventional funding due to lack of security or poor track record. The SFLG guarantees 75% of the loan, in return the borrower pays the DTI a premium of 2% a year on the outstanding amount of the loan. Other commercial arrangements are between the lender and borrower.

To be eligible, you must be a UK company with an annual turnover of no more than £3m (£5m if you are a manufacturer).  Many business activities are eligible and the loans are available for most business purposes although there are some restrictions.

Currently an independent review of the SFLG has been asked for by the The Chancellor and Secretary of State for Trade and Industry. The Government has stated that it believes that SFLG continues to play a valuable role in supporting small firms in the UK.  However, it is nevertheless aware that the market in which businesses raise debt finance is more sophisticated now than when SFLG was first introduced in 1981, and wishes to build upon the recent success of the scheme by examining its effectiveness in this changing market environment and ensuring that it is useful and practical for both lenders and borrowers.

The review is asked to work closely with the main SFLG lenders and to examine, and if appropriate make recommendations regarding:

• the structure and rules of SFLG and their appropriateness to the scheme’s effective operation; and
• whether SFLG, as the Government’s principal intervention in the supply of debt finance to SME's, is effective in tackling the barriers faced by start-ups and small businesses in the current market.

If this form of funding is appropriate for your business ore you require further information contact us at enquiries@ebassociates.co.uk .

For general funding issues visit our  Business Funding section.

Or alternatively if you need specific assistance you can  contact us now  with further detail.

It is vital  businesses, especially the SME sector gain access to key areas of assistance to help them in their development process.

Consultants Take the Strain.

A consultant by definition 'is a person to seek information or advice from' -more and more organisations are using them because the business may not have the skills or time to complete something internally. Consultants often provide relatively inexpensive access to solutions otherwise not available using internal resources. 

Looking for a consultant usually means you have identified something which needs doing, whether you are seeking a corporate image, marketing, funding, restructure or an overall business plan - selecting the right firm is all important.

Having the basic skill set is a fundamental requirement but also can the consultancy business carry through a project to meet the end objectives. Has the consultant and the business clearly defined what has to be achieved and can it be measured. With many consultancy projects actions and recommendations are usually generated, does the project stop there possibly leaving the client 'High and Dry' or can the consultancy firm see these through and assist with the implementation phase? These factors should be established early on in a relationship to ensure clear understanding. Working with people who you get on with is half the battle, working with someone who understands the needs is the other half.

External consultants should be a long term relationship which helps the business through the difficult times as well as the more rewarding ones.

Help is at hand just e-mail and we will put some suggestions forward Click Here

Tax Rebate on Cost of new IT Equipment

The concession to claim 100% tax rebate on the cost of new IT equipment was due to end last year but was extended by Gordon Brown in the 2003 Budget.

IT and software companies are warning businesses that the March 31st deadline is drawing near and therefore advantage should be taken of this concession, should it be withdrawn after the Chancellors budget speech on the 17th March.

The tax break means that businesses with fewer than 50 workers pay less tax and can boost their cash flow instantly.

Medium-sized firms, with between 50 and 250 workers, are eligible for a 40% concession. The scheme covers a wide range of products including palmtop organisers, upgrade components and 3G mobile phones.

If you need specific assistance you can  contact us now  with further detail.