The banks are still making life difficult for small businesses across our county. Figures out today show that RBS and Lloyds in particular are hoarding cash, not releasing it to reinflate the economy. No doubt it will be used to pay their own bonuses!
A visit to a good accountant always clarifies the local trading performances, after all they see all of the figures. With this in mind I called in to Wrexham accountants E & P ACCOUNTANTS for a pleasant informal and informative chat with senior partner Alan Evans. He was able to confirm that whilst the majority of local businesses had safely negotiated 2008, 2009 was proving to be difficult for most sectors. He was able to confirm one of my fears, the banks are asking potential business borrowers for up to 11 and 12% interest rates on business loans. No wonder they are so cash rich! Which businesses can afford these? If things are difficult for you it's a good idea to consult with your accountant before you get into trouble, particularly if you are fortunate to have a pro-active one like Alan.
Alan reminded me that panic really set in when the American government allowed the biggest mortgage lender, Lehman Bros to go under. One can't help but wonder if a lot of this resulting recession misery could have been avoided? On the other hand would the obscene greed have continued unabated in the banking system throughout the West if they had been rescued? We will never know.
It's raining again today. If there are "green shoots" they will be well watered!
Mervyn L
