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