Loan help for pubs via new scheme

Licensees can access free help to secure bank loans via a new Government-backed scheme.

Specialist advisors are now on hand through Business Link, the Government-backed help group for firms.

The head of Business Link, David Parkin, said the agency had been in discussions with the British Bankers Association about lending criteria so expert advice can be given.

"We can't directly influence lending decisions," Parkin told the Morning Advertiser.

"Banks have to make a decision based on evidence presented to them. What we can do is help them (licensees) prepare the best case."

It comes as welcome news for licensees who report that major banks refuse to lend to pubs because they see them as high-risk. Banks have also been accused of adding onerous conditions and extra charges for loans.

However, anecdotal evidence has found more recently that banks are beginning to lend to the sector again. Parkin said that in general, Business Link is "slightly more optimistic" about the prospect of firms securing loans than he was when the group was

set up last October.

Trade group the Forum for Private Business (FPB) welcomed Business Link's involvement.

"Many small firms are being rejected [for finance] simply because of their size or industry sector," said Nick Palin, the FPB's director of finance.

"The Business Link financial intermediary service, delivered locally and for eligible businesses, is a welcome step towards helping banks re-engage with their small business customers.

"We are calling on the banks to get behind this initiative publicly so that viable yet struggling business owners are encouraged to explore the help that is available."

Business Link can be contacted on 0845 600 9006 or via the website a href="http://www.businesslink.gov.uk" target="_blank">www.businesslink.gov.uk.