ART (Aston Reinvestment Trust), which lends from £10,000
to £50,000 to small and medium sized businesses (SMEs) in
Birmingham and Solihull, has confirmed that it will have
£1.6m available to lend in 2011-12. In all cases ART lends
where a bank has been unable to help either in full or in part.
ART is an independent loan provider (known as a Community
Development Financial Institution) that aims to support local
jobs. It is supported by private companies and individuals as well
as local and national Government and European funding. Over the
past 14 years, it has helped around 500 borrowers to start up,
survive or grow. "We have lent more than £9m since we set up,
to businesses operating in just about every sector," says Steve
Walker, Chief Executive of ART. "Our remit is to ensure that viable
businesses in Birmingham and Solihull can access the finance they
need."
The current concern is that businesses are wary of getting into
debt and lack the confidence to apply for loans. "Demand has been
surprisingly low in Birmingham and Solihull," says Steve.
"Everywhere you turn small business owners are saying they can't
access finance, yet they do not appear to be applying for what is
available."
Steve believes that many small businesses are not aware of
the all the options available to them. "The banks are no longer the
primary source of finance for small businesses at start up level,"
he says, "and there are many alternatives which can be used alone,
or packaged together, to provide a tailored solution." He worries
that businesses are losing out by opting to use personal finance,
such as credit cards, for business purposes. These are not only
usually a far more expensive way to borrow money, but using them
also cuts businesses off from specialist advice and support that
could be of enormous benefit. "It's that old problem," he says,
"you don't know what you don't know. Whereas if you speak to
finance experts, like the team at ART, you're quite likely to find
they have a solution you haven't thought of."
ART takes a personal approach to assessing loan applications and
the application process is straightforward. Money can be used for
any business purpose - including to support cashflow - and made
available quickly if necessary.
"We're keen to see applications increase this year," says Steve.
"We don't want any money remaining by April 2012 - we'd rather see
businesses putting it to good use."