The business secretary has just announced plans for a new lending initiative. Sounds promising, until you look at the small print;
A couple of comments to err on the side of caution:
So please excuse the scepticism but my conclusion is that this is just another idea destined for the bin? Let me remind you of project Merlin, The Enterprise Guarantee Scheme and the previous flagship “Funding for Lending” Scheme. The latter, which came under scrutiny when some banks admitted that they didn’t even entertain the idea of getting involved!
At the end of the day schemes like this will not be successful because nobody can afford to borrow with inflated rates in these unrealistic market conditions.