There’s just no give

A recent conversation with a few local banks has suggested that although there is no financial help available to small businesses – there somehow according to them seems to be an increase in the amount of start ups looking to open up a bank account.


How or why can this be?


It’s one thing opening a bank account, it’s quite another actually using a bank account - meaning that you have to put something in it to be able to get something out of it.


The banking reigns are even tighter and their becoming more disciplined with the conditions of use of their bank accounts……all this now tends to result in absolutely ‘no give’ currently being awarded to a small business.


One could suppose that the increase of new start ups could be down to the lack of suitable employment opportunities – or the fact that many people have had enough and want to give it a go themselves, whichever it; neither offers  immediate nor long term stability unless you work at it.


We have come across a few local people who recently have gained employment as part of a European company’s expansion plans into the West Midlands region, unfortunately due to the nature of the business and the volume of cashflow required the banks were unable to award them (and their customers) suitable short term financial assistance despite orders in the pipeline. The result being that the few local people who gained employment only 3 -4 months prior were laid off and the expansion plans cut back and the manufacturing company made a withdrawal from the West Midlands region.


You hear that local economy encourages outside investment and relocations to help boost the West Midlands region, yet it would appear in the instance highlighted above there was “just no give!”

We all know that as a small business there’s a chain of events which lead to a paid sale, and a majority of the times what’s verbally agreed or notified is as a direct result of the information received from business suppliers and customers.


Such information is now becoming too harming due to its failure to materialise on time, or in some cases to materialise at all. Business and supplier relationships are becoming strained or permanently tarnished and fragmented due to there being ‘no give’ primarily by the banks somewhere within the supply chain process.


Promise of payment is hindering the small business to an extreme amount, and whilst intentions of businesses, suppliers and customers are well meant……it’s only the action or results which will help in these current times.


Banks heaping charges on the accounts of small businesses for either being slightly over their limit by a few pounds, or getting on their backs for failure to lodge a payment within a 30 day period - only adds to the stresses and strains on an already volatile and stressful situation.


There needs to be ‘some give’ by the banks to local businesses despite the banks front line staff being aware of the current situation out there it would appear that the banking system itself may still be behind the times.