In an article on the BBC news site Knight reiterates the recent findings of the Bank of England’s Trends in Lending report, whose agents across the UK have reported that demand for loans from SME’s remains weak.

Despite UK banks lending as much as £500m to small businesses there are calls from some SME’s and their representatives to make more funds available.

Knight insists that adequate funds are available and that banks are committed to lend to viable businesses, after all the core business of the bank is to make a return for its customers by lending money to sound borrowers.

The report also suggests that similar to personal debt, many companies are attempting to pay off their debts rather than saddle themselves with more.

The crux of the article is that banks are prepared to offer finance at any level providing that the borrower is viable and can demonstrate the means to repay the money.

Historically in the UK  many small businesses have borrowed beyond their means and once saddled with an overdraft facility have simply attempted to increase the borrowing year on year.

This works ok in a normal or booming business climate, but during the financial crisis banks have had to become more aware of their own failings. Constantly increasing business debt to companies that do not have the facilities to reduce the burden is no longer seen as viable business to bankers and rightly so.

It is up to business owners to ensure that they have are viable and not bogged down in debt already before approaching the bank for increased finance.

More so than for many years, business borrowers will need a robust and sustainable plan for repayment of any monies lent to them, before the bank manager is likely to be interested in lending.

The Forum of Private Business claims that business owners are finding it more difficult than ever to access finance and indeed many report that they have had overdraft facilities cut, or withdrawn altogether.

In a separate survey the Federation of Small Businesses found that 25% of its respondents are unhappy with the support they are getting from traditional lenders.

Whatever way you look at it the traditional lenders that were rescued from the financial crisis by the previous government are still refusing to play ball with many small business account holders.

This is not always the fault of the banks of course as many SMEs are primarily sales orientated and will take an order at any cost, even when knowing that they may face a long wait for payment from the customer.

For these businesses collecting outstanding accounts is a secondary consideration that will never receive the same attention as obtaining an order.

There are of course other options to conventional banks when looking to finance the growth of a business and among these are Factoring and Invoice Discounting. Companies offering these services operate only in the business sector and should therefore understand your needs better than some of the more traditional lenders.

Factoring and Invoice Discounting are quite often considered to be same thing, this is not actually true and the basic differences are explained here.

Factoring is a process whereby a business sells its outstanding sales invoices or accounts receivable to a third party (Factor) at a discount, in return for immediate payment. This is a continuous process that ensures a regular cash input into the business each month and reduces the need to chase bad debts.

The Factoring company is then responsible for collection of outstanding accounts by providing a full sales invoice administration coupled with credit control and debt collection service, enabling the business owners to concentrate fully on growing the business.

Alternatively, an Invoice Discounting Company will lend your business money using the sales ledger as collateral, releasing immediate cash against sales on a regular basis.

The business owners retain full control of the sales ledger and remain responsible for the collection of outstanding accounts.

This article is intended as a very basic guide to Factoring and Invoice Discounting versus conventional banking in the UK for SME Businesses. Services in this sector are tailored to suit individual companies and anyone looking for alternative funding for their business should seek advice from the experts in this field.

The research shows that over 50% of credit card holders for instance have not reviewed their monthly payments or balance in the last year.

That figure raises to 82% for people who have overdrafts and 86% for those with personal loans, showing that generally once provision is in place the majority of us do not bother taking steps to control our outgoings.

The study reveals that people are not taking proactive steps to ensure they stay on top of their money – 53% of consumers have never checked their credit rating, despite it being possible to do this for free, and I have to admit to being among them.

And one in five (21%) are unaware that missing a credit repayment can harm their credit score with 25% believing that ignoring a County Court Judgment will not affect their ability to access credit.

Dr Jonathan Henderson, consumer psychologist sees this “as a classic manifestation of the ‘ostrich syndrome’, where people choose an out of sight, out of mind approach to their finances where the less you know, the less there is to worry about.  Often people kid themselves they’re in good financial shape but in reality it’s a different story, which is only revealed when bigger problems occur further down the line.”

For years we have campaigned for plain speaking jargon from financial institutions and now Capital One have taken it upon themselves to offer practical financial education advice.

To help consumers improve their financial management Capital One has launched its ‘Credit Made Clearer’ campaign, which features a series of short animated films explaining in an easy to understand format the key area of finance that affect us all.

The campaign is designed to offer helpful money management while also dispelling the myths and confusion that are ingrained in the world of credit and finance through a series of easy to follow and understand animated films.

Commenting on the new campaign Brian Cole, Managing Director, Capital One said: “It is encouraging that consumers believe they are on top of their finances but perhaps they need more support in order to ensure they do not make avoidable mistakes.  We hope that our approach, which combines animation and humour, will help more people to think about their finances and take simple positive steps to improve them.”

For more information visit the Capital One ‘Credit made clearer’ campaign and watch the series of video clips with helpful and easy to understand financial tips and information.

While it was not unexpected many have been left reeling at the severity of the austere measures announced by George Osborne, wondering what the next few years have in store for debt laden Britain.

Far from seeing a light at the end of the tunnel as many had hoped coming into the election, the government has laid out the finances of the country clearly for all to see and it is not a pretty picture.

For the general public the future may look bleak, many of us are already struggling to make ends meet and further cutbacks in the household budget will obviously prolong the pain, but generally being British we are prepared to face up to things and move forward.

Tightening an already strict budget is nigh on impossible and we are often being asked for advice and tips for money making or saving opportunities.

There is no easy answer, get rich quick schemes as we already know exist only for those selling the scheme and often the only alternative course of action is to resort to selling off unwanted household items at boot fairs  or on ebay or to sell unwanted gold and jewellery to a specialist.

If you have the time and some available finance it is possible to make decent money from buying other peoples unwanted items and selling them via the internet or through boot fairs and the like.

However this may involve having to register yourself as self employed and your earnings would then be subject to UK taxes and National Insurance contributions.

The next few years will undoubtedly take their toll, we may have to work harder or longer hours to survive unscathed and now is the time to prepare ourselves for the journey.

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Despite the best intentions of the previous  government in its attempts to cushion the blow of the financial crisis the UK taxpayer is likely to be contributing to the debt for the foreseeable future.

The fact is that the country is still struggling through the aftermath of the crisis and while their is a glimmer of light at the end of the tunnel, we are still in recession.

Generally businessmen have welcomed the new coalition government’s approach to dealing with the national debt and lifting the gloom of the past year or two, but it will take some time before unemployment falls to an acceptable level and businesses are able to create new jobs.

Many, through no fault of their own have found themselves out of work and the immediate future does not look too bright.

People are always looking at ways to raise money and in recent times the market for items of gold coins and jewellery has offered an opportunity for some.

The precious metal has increased in value as investors have withdrawn their support from the currency markets in search for a safer haven.

High Street shops have appeared all over the UK along with a plethora of adverts on TV offering cash for gold, giving the public a headache over who is likely to offer the best price for their unwanted jewellery.

One of the companies to consistently come out top in research that includes BBC’s One Show is Postgoldforcash, a company based in Bournemouth.

As well as offering the best price the company has also been commended for its friendly and ethical manner when dealing with the public.

But be prepared if you are thinking of selling your unwanted jewellery, any offer will be based on the actual weight of the item and not on your own personal or sentimental value.

The key to beating your debt problem is to tackle it sooner rather than later. If you regularly receive warnings over late payments then start at a very basic level. If you haven’t yet devised a weekly budget then write one out and stick to it. Key to overcoming a debt problem is being aware of it and its severity; burying your head in the sand and ignoring credit card statements won’t make the problem go away.

Once you’ve developed a budget and are confident in its feasibility, it’s time to take a long, hard look at your outgoings. If you’ve been made redundant and are experiencing cash flow problems then a budget may be easier to stick to – it is often more difficult for people used to weekly or monthly treats such as big nights on the town or regular shopping trips. If you’re prepared to show a bit of self determination and cut back on life’s little luxuries, you’ll find your finances get back in shape sooner rather than later.

Credit cards are a fantastic way of borrowing money and, if used correctly, are the cheapest too. There are an incredible number of deals available, and if you can get zero per cent on purchases and balance transfers for a year, you’ll be laughing – providing you remember to pay off your debt as early as possible. There is a flip side however – if you get it wrong, don’t do your research and fall behind on payments your debt problems can intensify and last for a number of years.

It should be remembered that there are two types of debt. Debt by itself is not a bad thing; it’s something that the majority of us will have to utilise at some point or another in order to advance in life. Without debt, very few people would be able to go to university or buy a house, and if used correctly it can be an invaluable tool. The distinction is with bad debt, which really began to emerge during the economic downturn and subsequent recession.

A spiral of bank collapses and redundancies began in September 2008 with the collapse of US financial services company Lehman Brothers. Many people who lost their jobs began to really struggle with their debt after losing their incomes, a situation that can rapidly turn into a living nightmare. But if you’re in a stable job and still experiencing debt problems, what can you do to curb your expenditure?

The danger with credit cards is that people use them to supplement their everyday spending, something that is easily done because of the lack of structure surrounding this particular form of borrowing. While this has obvious advantages in terms of flexibility, those less responsible can soon become reliant on their plastic friends. How many times have you seen the person in the queue in front of you at a clothes outlet, restaurant or music store pay using a credit card rather than a debit card?

If you want to use your credit card correctly, make sure that any expenditure is planned, budgeted for and as inexpensive as possible. A sign of an impending debt problem is reaching for your credit card to ease the outgoings from your bank account. If you find yourself in this situation, stop and think whether you can really afford or need what you want to buy, and whether you may be able to a few weeks or a month further down the line.

Every credit card holder should strive to be a responsible borrower, and this isn’t simply a case of borrowing as little as you can and drawing up a budget. You might be the most prudent spender among your family and friends, but this will mean very little unless you’re able to pay the debt back quickly. It’s also true that the faster you pay it back, the less expensive it will be – and if you’re saving money, you’ll be able to afford more things. Simple.

Arguably the best way to keep track of your credit card expenditure is online. You could wait for your monthly statement to fall through your letterbox, but with lenders stepping up their efforts to be more environmentally-friendly and use less paper, this is becoming a less common way of finding out how much money you’ve borrowed and how much you owe. Instead, register your credit card and bank account to be available online and have access to both via your bank or lender’s website.

While this is great way to keep tabs on how much you’re spending, customers are encouraged to be vigilant against phishing emails. These special types of spam emails are designed to steal your money. How do they work? Well, it’s pretty sneaky – they trick you by being cleverly disguised to appear from your bank or financial services provider before encouraging you to type in and submit your details. Once the phishers obtain these, they have full and unrestricted access to your cash.

The good thing is that there is no need to be caught out. The golden rule is to never, ever click a link and enter your password, even if you believe it to be from your bank. If it appears genuine, it’s always a good idea to give your bank a call to check or visit their website directly.

With these tips, you can look forward to living a life free of debt problems, providing you follow the few simple steps. Once you’re able to track your spending online, you’ll become more confident about sticking to your budget and, in time, begin to reap the financial rewards.

One such issue could be the facility to make payments for day-to-day items without having to draw cash from your business bank account or petty cash tin.

Setting up meeting rooms, arranging travel, organising staff expenses, paying for working lunches and settling utility bills online -  these are just a few of the areas where a credit card could become invaluable. But what type of things do you need to consider when shopping for the right package?

A Lloyds TSB Business Credit Card can offer a number of flexible ways to make sure all of these overheads are dealt with in a timely fashion, as well as providing a facility that keeps the cash flow moving while keeping you in control.

For those who are reluctant to set up credit facilities a more suitable option might be the Business Debit Card. With this you can get access to money from any number of cash machines across the world and you can use the card online and over the telephone.

The third option available is the Lloyds TSB Business Charge Card, which gives employees the ability to sort out their own expenses. However, with account limits and card numbers set by you, you can maintain control of the company outgoings with relative ease.

In addition to all of this, small business customers who choose any of the above facilities will be protected by the Lloyds TSB ClickSafe service. This means that train tickets, stationary, hotels, events and any other online purchases are given a little extra security – which should give you greater peace of mind when using the web.

In the same way as you would enter a PIN number when using a credit or debit card in person, Lloyds TSB ClickSafe allows you to set up a personal password to confirm your identity when visiting internet checkouts. The option is also known as Verified by Visa and MasterCard SecureCode and is designed to address the growing need to use the web to pay for goods, with additional protection against card crime.

Thanks to the advent of instant loans however, there is no longer a reason why these have to be unaffordable.

In the past, people would have turned to a credit card for life’s smaller purchases when money became tight, while a bank loan would have normally been used for larger outgoings such as repair bills or residential deposits. Now though, a new approach to credit is being pioneered – and thankfully for the borrower, they are able to remain in complete control throughout the entire process.

Cash loans are sometimes confused with payday loans, but the reality is that they couldn’t be more different. Payday loans emerged from the ashes of the recession, with customers and responsible lenders alike looking to move away from the lending practises of old to a safer, more considered approach.

Payday loans are linked to a borrower’s pay cheque and involve either post-dated bank cheques or a direct salary reduction. Furthermore, providers of payday loans tend to make little or no effort in assessing a potential customer’s financial suitability or creditworthiness – a trend synonymous with the irresponsible lending that was ultimately responsible for the worst economic crisis in a generation.

Wonga is pioneering a new approach in the UK credit market and responsible lending is right up there on its priority list. The fast loans provider ensures that all applicants undergo stringent identity and credit cheques – this ensures they only take a loan they are able to manage and do not become saddled with unnecessary debt.

Financial experts are in agreement that the golden rule of applying for a loan is making sure that the minimum amount is taken out while still covering your needs and that this amount is paid off in full as quickly as possible. Wonga explains clearly to its customers about the nature of credit and the costs incurred – a refreshing approach given that many standard providers are happy to see loan repayments strung out over a period of weeks and months.

Some lenders also encourage minimum monthly repayments. While this can seem attractive in the first instance because you’ll be paying back paltry amounts each month, the reality is that this builds up over time and a customer will end up paying way over the odds. A Wonga loan, by contrast, has an agreed amount of time over which it has to be paid back in full – ensuring borrowers won’t have to pay any more than they need to.

Wonga’s commitment to responsible lending extends to loan extensions. While traditional lenders may be only too happy to grant these, Wonga won’t be – unless, of course, the customer can prove it is in his or her best interests. Wonga does not promote loan extensions because they can land borrowers in greater financial difficulty – anyone applying for one must pay back a sizable portion of their existing balance before it can be granted.

Financial services secretary Paul Myers said at the turn of the year that the UK’s banking sector needs to become “safe, sound and responsible” – and these three aims are ones that Wonga is also aspiring to. Its principles are based around total transparency, complete control and extreme selectivity – which are likely to be welcomed by both customers and forward-thinking members of the financial services industry.

Once you’ve decided that short term loans are for you, you need to determine how much you wish to borrow. Cash loans up to £400 are available to first-time applicants, and these can be approved for periods of between 1 and 30 days. After applying for a fast loan and being approved, the money is received in the customer’s bank account in a matter of minutes. During the process, the rate of interest is calculated by the provider, and rates stand at one per cent per day for loans lasting up to one month.

Customers can apply for an exact some of money. Whereas traditional lenders ten to offer only set amounts, Wonga will let you choose the amount you require in addition to letting you choose a repayment plan suited to your circumstances. These help to guarantee that borrowers do not pay over the odds – something that is not a given when taking out a bank loan, payday loan or new credit card.

This approach is particularly welcome in the aftermath of recession, with many lenders having effectively been forced to tighten their lending criteria. With many people having been made redundant and many more having accepted pay cuts, there has rarely been such a strong demand for credit, and thankfully Wonga has stepped in with its innovative approach to offer credit solutions to people affected by the recession.

While still a relatively new set up in the credit market, short term loans have already made a big impression. Almost three-quarters (72 per cent) of respondents to a Wonga poll said that, if presented with the opportunity, they would choose fast loans over traditional means of credit. What’s more, customers have been hugely impressed with the method of obtaining cash loans – a whopping 95 per cent of respondents to the same survey said the process had been “easy or very easy”.

Not only does the process take minutes, but applicants benefit from not having to attend a formal meeting with the provider or fill out reams of unnecessary paperwork.

If an unexpected bill has landed on your doormat or your car is beginning to pack up then fear not about the costs you’re likely to incur. A short term loan will afford you access to the exact amount of money you need to cover your back without paying over the odds – so why not see what a cash loan can do for you?

Figures show that this is the fifth consecutive quarterly increase in personal insolvencies, while the number of businesses going into liquidation has fallen sharply.

Although the number of personal insolvencies only crept up, rising by 108 from the final quarter of 2009, there was some variation in the ways in which people went insolvent, the figures show.

There were 18,256 bankruptcies, the traditional way of dealing with overwhelming debt. This was down 10.7% on the same period the previous year, but up 7.3% on the previous quarter.

The number of Individual Voluntary Arrangements (IVA), which see people come to an official deal with their creditors, stood at 11,782, an increase of 20.1% on the same period last year, but at the lowest level since the first quarter of 2009.

Debt Relief Orders (DRO), the latest way of dealing with relatively small debts, was responsible for 5,644 of the total of personal insolvencies.

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As a result of the financial crisis, for some people it can be a real struggle to make ends meet on a regular basis and they may need some temporary monetary assistance in order to pay bills that continue to come in. This is where short term loans can prove to be very useful as they provide people with a small amount of money for a short period of time, and ease people’s financial worries for the immediate future without having to run up a large debt.

The advantage of cash loans offered by online lenders compared to payday loans and traditional sources of long term credit is the flexibility that is available for the customer, as they can select the exact amount of money that they need, however small an amount this may be. By giving customers control over the size, length and cost of their loan, they are never encouraged to go into more debt than is required and therefore can keep their finances manageable in the short term and long term.

The convenience offered by online lenders is also a plus point for customers, as fast loans can be acquired in a matter of minutes from the comfort of their own home. The whole process can be completed online, so there’s no paperwork to fill in at all, no meetings with bank managers and no hanging on the phone, making the process more straightforward, accessible and convenient than borrowing money from a bank.

The speed of the process of borrowing money online is also incomparable to traditional forms of lending, as the application process takes just seconds. Once the customer has selected the amount of money that they require and decided what period of time they would like to pay it back in, an instant answer is then given as to whether the specific application has been accepted. Online lenders are committed to being responsible in their lending and only lend to credit-worthy individuals, but if an application is accepted the money will be transferred directly into a specified bank account within fifteen minutes.

Everyone experiences financial difficulties at some point but occasional cash flow problems can now be solved in a convenient, short term and completely responsible way. The availability of short term cash advances online removes the complexity and inflexibility that consumers often face when they need to borrow some cash in a hurry. This flexible and short term financing empowers consumers through a completely new way of borrowing, and allows them to get on with life free of financial worries.

Using online lender Wonga is the quickest and most convenient way to borrow money online for a short period of time. Their sophisticated technology makes their service unique and as a result the application and decision process takes literally minutes. Their service is ideal if you are facing short term cash flow problems as consumers can borrow up to £400, and repay it over a period of time that suits you and your individual needs. Wonga help to put the customer in control, as they are given complete control over the service, and in turn their cash flow and consequently their life.