Today a scan of Google News will throw up over 7,000 articles on the subject and with the Dow closing last night below 10,000 points at 9985.81 pressures are growing:

Here are some key Data you should be aware of

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Three consecutive days of Dow Jones gains were brought to a juddering halt last Thursday (19 August) with the release of the latest unemployment figures in the US. The news that 500,000 new claims for unemployment benefit were filed in the week ending 14 August was not welcome. The index headed downward and global markets duly followed.

Sir Alan Budd continues to grab the headlines since leaving his post as chairman of the Office for Budget Responsibility. Although he stressed it was only a possibility, the economist suggested in an interview with Radio 4’s Today programme that a double-dip “is a possibility” in the UK.

A poll by YouGov found 55% of UK adults believe there may be another economic slump in the next year, although only 14% think this is very likely. Tellingly, only 4% are confident the country will not enter recession again.

Former Merrill Lynch economist David Rosenberg told CNBC: “The risks of a double-dip recession – if we ever got out of the first one – are actually a lot higher than people are talking about right now. I think that it is almost a foregone conclusion, a virtual certainty.”

Is your Business Double Dip Recession Ready?

Survival of the fittest… if you are concerned about how your business would perform in a double dip recession Enable Finance have created a Business Review designed specifically to give you answers and more importantly show you what options and actions can be taken click here to apply confidentiality assured.

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According to new research Lending to SMEs under the government-backed Enterprise Finance Guarantee (EFG) loan scheme has continued to plummet, with a further fall of 20% in the last quarter and 59% in the last year. The scheme lent a measly £149 million the second quarter of 2010.

No wonder the Bank of England is downgrading its forecast of GDP growth from 3.5% to 3% for the second half of 2011, if the banks don’t start lending again recovery will be fragile.

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It’s clear that the EFG is political spin, on the one hand the banks are told to lend money to small and medium sized businesses, however, they are also told by another government body the Financial Services Authority they need to rebuild their balance sheets and be more prudent.

So is the EFG loan a big practical joke that only the chosen few will ever get accepted for?

If you have applied for an Enterprise Finance Guarantee (EFG) Loan and either been successful or not I’d love to hear your story please feel to post your comments below.

MPC member Andrew Sentence has voted for a rise in interest rates for the last two months but the other members have all voted to maintain rates.

I am not totally surprised that interest rates have been held at 0.5% as I believe are economic recovery is still fragile and would expect to see low interest rates for the next 3 years.

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One thing that we and specifically business owners need to be mindful of that average interest rates are around 3% and we should not get tricked that interest rates of 0.5% is normal because its not.

If you are taking out new finance its a good idea to stress test the loan repayments to see what would happen if base rates 3 or 5% this will arm you with information about what could happen in the future.

Interest rates have been historic low now at 0.5% will concerns over inflation require the bank to consider raising interest rates? Lets wait and see the MPC decision is usually unveiled at 12.30.

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Peter Spencer, chief economic advisor to the Ernst & Young ITEM Club, says: “A base rate of 0.5% will begin to look like the new normal.” He goes on to say that fiscal tightening implemented by the new coalition should not choke off the recovery, but it will slow UK economic growth over the next two years.

It says high energy prices and the increases in VAT will keep CPI inflation above target over the next 18 months, but it will then move well below 2% as these effects wear off and spare capacity bears down on pricing decisions and wage bargaining.

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To prevent CPI inflation moving below 1% it says it will be necessary to keep the Bank base rate low at 0.5% for much longer than the markets have anticipated.

The chancellor’s five-year plan to cut the deficit while keeping the pace of the economic recovery is very ambitious.

But ITEM Club believes that in the long term it will lead to more sustainable high-quality growth from 2013 because it will be led by business investment and exports, rather than public spending.

Spencer says: “On the assumption that the government is able to implement the overall reduction of £40bn it set out in the budget, we expect that UK growth will struggle to reach 1% this year but will gradually speed up in the following years to give the UK a high-quality recovery based on trade and investment.”

Enable Business Finance welcome the news and have firmly believed that interest rates would have to remain low over the short to medium term if we are going to see growth. What is more important that low interest rates is that for Bank and Financial Institutions to start lending to small to medium sized businesses. There is still strong evidence that small businesses are being starved of working capital.

One of the biggest problems buying property via a bridging loan has always been that you need to evidence an exist strategy to close the bridge. Well not any more this product does away with the exit strategy as it has one built in.

6 month Bridging Loan reverting automatically to a standard Buy To Let Mortgage

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How this product works: Purchase the property with our fast bridging loan, funding up to 75% of the open market value, not the purchase price. (Loan must not exceed 100% of the purchase price.) The applicant then carries out refurbishment work.

Once applicant confirms that the refurbishment works are complete, the original valuer will revisit the property and will confirm that works have been completed to a satisfactory standard, and that the property is now in a condition to let. A second valuation will be provided by the valuer.

Inspectors will in all cases visit the property at the Bridging assessment stage, and will reserve the right to visit at any time during the refurbishment and/or on completion of such works.

Applicant will be required to provide confirmation that a tenancy (at appropriate level – see below) is agreed and which point Bridging facility will convert to buy to let element. If the applicant is unable to provide a suitable tenancy, or details of a pre-let, 3 months mortgage payments will be deducted from the BTL advance, or if sufficient equity is not available will be required to pay 3 months mortgage payments in advance.

Want to build a Property Portfolio? Click here to Apply Today

He takes over the chairmanship from David Betteley, director of financial services at Jaguar Land Rover, who is standing down as FLA chairman after three years.

Sutton said: "I am very grateful to David Betteley for his strong leadership of the FLA over recent years, and I am conscious that this is an exciting time to take over from him as Chairman of the FLA. I look forward to working with the FLA team to make sure our voice is heard by the next Government and by our regulators, so that our members have the best possible business environment in which to serve their customers and so contribute to the economic recovery."

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“Our publication is actually far too professional to touch the awards spectacle with a bargepole however we have been very happy to recognize an exceptional accomplishment which can be substantiated through sound data.

“Receivables 2009 verifies a couple of trends. A fragile appetite for business funding from the customers of big banks as the UK suffered from recession – this underlines why business lending targets overall are so hard for banks to achieve and is one of several reasons why Lord Mandelson’s talk of credit adjudication panels is hopelessly unworkable – and the manner in which the UK’s several independent invoice finance providers have stood up to the challenge and supported a beleaguered SME sector.

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“All of them are worthy of praise but Bibby’s achievement in the UK, as well as expanding into nine countries worldwide, is outstanding and worthy of note.”

Factoring companies with 200+ clients 2009 Factoring clients Average loan Lloyds TSB 6,476 £48,332 Bibby Financial Services 3,326 £65,244 HSBC 3,018 £64,944 RBS Invoice Finance 2,996 £110,147 Barclays 1,414 £95,615 Absolute Invoice Finance 729 £112,483 Venture Finance 592 £97,973 SME Invoice Finance 493 £50,710 Close Invoice Finance 381 £125,984 Hitachi Capital 337 £58,457 Fortis 300 £3,333 IGF Invoice Finance 274 £58,394 Ashley Commercial Finance 265 £17,925 Ultimate Finance 205 £64,878

High growth potential businesses will be able to take part in a range of workshops, boot-camps and coaching sessions that will enable them to “turn their business propositions into attractive investment opportunities”.

Participating firms will get up to five days worth of free advice designed to:

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• Help them understand the finance options available and where they fit into their business.
• Help define their finance needs.
• Build their understanding of potential funders and their expectations.
• Understand the fund-raising process.
• Understand how to make and defend their pitch to investors.
• Help grow their business with expert coaching.

Programme manager Andy Chaffer said:

“I’m looking forward to working with the region’s budding entrepreneurs and helping them get access to supportive investors. Funding has never been as important to businesses.

“The advice and support UFFB offers can make a real difference for companies and I know from my previous role the satisfaction to be derived from helping companies achieve growth and success.”

Although Excel Securities had not been actively lending in the bridging market in for a few  months now, the news will still come as a shock to those in the bridging Loan sector.

According to the regional business news site, The Business Desk, at the end of 2009, Excel Securities owed its funders over £23 million, with £10 million of this to be paid to NatWest and the rest due to the Israeli Discount Bank and Bank Leumi (UK) plc.

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