Reduced EFG Lending For Construction
The amount of Bank lending to small building firms, through the Government lending scheme has fallen to almost nil, a new report claims.
Accounting firm Wilkins Kennedy said that funding from the EFG (Enterprise Finance Guarantee) scheme fell by 86% to £3.5 million in the three months up to June 2012, as compared with a high of £25 million in the same period in 2009.
Nick Parrett, from Wilkins Kennedy, said:
The lack of funding for small construction businesses has had serious implications on the construction industry as a whole, as well as for the wider economy.
In 2011 alone, over 3,500 construction companies went bust. Problems with funding and the financial stability of small suppliers can hit the entire supply chain and have led to many building projects stalling.
A lot of jobs have disappeared or are at risk. These figures show the EFG scheme is now essentially meaningless for getting funding to small businesses in the construction sector.
Other recent reports have indicated that the construction industry is due for an upturn with a large amount of new housing required in the next few years. Lets just hope that there will be a construction industry in place to complete the work when its needed.
Of course if you are looking for a career change to something where you do not have to be responsible for your decisions and can get a bonus whether you have performed or not, you could always make the move into banking.