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17
Oct
2012

Musings on Bank Lending.........

by Claire Martinsen on Wed 17th Oct 2012 02:58

I got a letter through from the bank on Friday asking if I’d like to borrow some money for the business……and assuring me that loans up to £25,000 could be approved over the phone without being referred upwards. I figured they must be desperate to lend!

There’s so much debate  in the media about bank lending – banks claiming they want to lend, small business owners saying that they are unable to get funds on anything like reasonable terms from the banks.

I didn’t approach the banks for money when setting up Breckland Orchard – I’m pretty much self-financed.  That’s been tricky to manage at times – I’ve been on a pattern of growth and reinvestment, rather than massive investment of funds upfront

For me that’s been a good model to follow:

FREEDOM – not having bank or angel funding has given me lots of freedom to do the right things and grow at an appropriate pace. I think overall the business is in better shape for having made decisions in the way that they’ve been done.

MANAGING TO A BUDGET – I’ve chosen to work within my means and to a strict budget.  Its been a good discipline and one which will stand me in good stead in the future.  I’m really careful about how and where I invest that hard earned cash, and I need to know that I’ll get a good return on investment.

So although my bank might have sent me a letter offering to lend, I think I’ll choose to carry on in the same way……its stood me in good stead so far!

 

 

 

 

 

Posted in: Running a micro-business Starting out

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