The governemnt is trying to egg the banks to lend to small business to 'create growth and jobs'.
I am a small business.
I need to buy a new server and so forth to push my business forward, say £3,750. Inc. VAT I could pay this out of cash flow but I prefer to finance capital equipment.
The bank won't lend to me. (Actually I have not asked them but sshhh)
I part own the banks through the state bail outs and shareholdings.
I have to pay a lump of tax in January.
Why don't the Government say, OK you need not pay your tax. Treat it as a loan to buy your new kit and pay us back over two years at base plus 3%?
Am I missing something?
Blow that whistle
3 hours ago
8 comments:
L, d'oh! You have to ask?
You need to pay all those taxes because the government needs money to inject into the economy to help SMEs. So just pop down to your Local Enterprise Partnership or Business Link (or whatever they are called this week) and apply for a grant or a soft loan or something.
You'll just need to fill in a few forms explaining your employment policies (will this create jobs for vulnerable people etc) and within a few days that cheque for £3,750 will be in the post!
You think governments don't simples.
Because they need your tax payment to recycle (inefficiently) to drug users on benefits, whence it can be sent to drugs barons abroad. Thats how govt works. You didn't think it was for the law abiding middle classes did you?
AFAICS, the retail side of banking, which is the side that would be lending to small businesses, is not the profitable side, so, basically the banks don't give a shit about small businesses.
You'll just need to fill in a few forms explaining your employment policies (will this create jobs for vulnerable people etc) and within a few days that cheque for £3,750 will be in the post!
Really? I could do with a new laptop, and quite fancy a Lenovo X Series (about £1500). Don't want a loan, but a grant sounds good.
Incidentally, £3750 for a server sounds pretty serious. What are you doing on it?
Your idea leaves out all the jobsworths who need to process your application and whose pay comes out of those taxes -- eating up all the cash available to you and more. So the story would actually go that you go and make the application and learn that the answer is NO. (Has anyone ever looked at the forms the old RDAs used to use?)
JT - I run a retail FS business. The server runs our CRM system. It's a very comprehensive, specialist all singing and dancing system that does all sorts of good stuff, aggregates all client assets, holds all our correspondence, is going to be usd to hold scanned documents, is used to run our business management stuff and makes the tea. The price includes two days engineers time to install.
Oh, and it's all backed up and we have a disaster recovery plan!
Thank you all for all your 'helpful' answers.
I like the idea. National credit!
Yes you are missing something: Why has no one asked why a producer willing and able to develop his business cannot do it?
There is no shortage of "real" credit in the circle of exchange. Nobody, including this guy has stopped wanting things, the demand is all there to exchange his work for someone else's.
So why are the banks not making that credit available to him?
No one ever seems to ask this simple question.
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