Deborah Meaden, star of BBC’s Dragon’s Den and investor, has spoken out to say that blaming the banks for not lending to SMEs will not fix the problems facing the UK economy. The expert in investment has also stated that there are plenty of opportunities for entrepreneurs and financial venture. Meaden has also made a number of investments as small businesses are keen to consider other sources of funding, thanks to the strict criteria of the banks.
According to Meaden, her investments are proving to be successful. She said:
“I risk my cash on businesses, and I’m actually doing really well at the moment because banks are failing to lend these businesses the cash, and I’m picking up businesses where I’m thinking, actually, in the past they wouldn’t have given away equity, they’d have got traditional funding. Right now they have to look at taking on equity partners.”
Meaden considers the caution of banks to be the right course of action. In an interview with the Huffington Post UK, she said that in the past banks were giving away too much money on businesses that proved too much of a risk. The banks should only lend to sound businesses. However, the caution displayed by the banks has stopped lending to good businesses that are innovative.
Meaden’s remedy for the UK small businesses is to go back to basics and use good business practices, not reviving those businesses which were only successful as a result of the buoyant economy. However, she does support the Equity Investment Scheme, which gives investors 30 percent tax relief.
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