Ready for business and ready to borrow

Banks are being advised to offer more transparency to current account customers, particularly when it comes to overdraft charges.

A study by consumer watchdog Which?, compared 21 current accounts currently available and found that in a worst case scenario, dipping into an overdraft without permission and having payments rejected could cost an extra £183 a month. In fact, some overdraft charges proved more expensive than payday loan schemes like the much criticised Wonga.com according to the research.

While I don’t think banks are purposely hiding information from their customers, there is definitely more that can be done to help customers to make more informed decisions about the way they run their accounts. However, there is also a responsibility for customers to read the small print when it comes to any kind of borrowing, and if there is any kind of doubt, always seek a second opinion.

The same goes for business loans. There is a mutual responsibility for the funder and the business to ensure that repayment terms and interest rates are completely clear before anyone signs on the dotted line. Financial control is so important to SMEs and can make the difference between failure and success, particularly in the early days of setting up a new venture.

One such example is the Ready for Business programme which offers individuals an opportunity to obtain external funding with the added security of expert advice and guidance. Delivered in conjunction with Barclays, Ready for Business centres on investor readiness and helps start-ups to get off to the best possible start by assisting them in the development of a robust business plan, therefore improving the chances of loan funding being secured.

Another initiative dedicated to supporting would-be entrepreneurs develop robust business plans to increase their chances of accessing funding is Virgin StartUp. Delivered in the region by TEDCO Business Support Ltd, who won the contract on the back of its success in delivering the Ready For Business programme, it is designed to help young people get on the entrepreneurial ladder by focusing on access to early capital, strong mentorship, advice and promotion.

Over the past twelve months nearly 2,300 new businesses have been created across the UK as a result of the Ready for Business Programme and this latest helps broaden the opportunities for anyone looking to start their own business.

In no situation will funding be guaranteed however by opening up opportunities and providing additional support it will help many more would-be entrepreneurs take their ideas through to inception; and in doing so ensuring they’re best placed to secure external funding.

For any businesses seeking funds through banks or other funding channels sources, the advice would be do your research, compare your options and don’t be afraid to ask questions.

Sign up to our newsletter