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The total funding to small businesses via brokers has fallen by nearly 60% this year but that does not mean that regulated advice is not the best option for any business trying to get through this recession.

The National Association of Commercial Finance Brokers has released the results of its latest annual survey of its members. It has found that all commercial and buy-to-let loans to small business have fallen over the year.

Adam Tyler, chief executive of the NACFB warns that the figure doesn't show the whole picture as regulated brokers very seldom get involved in unsecured lending such as business loans and overdrafts. However, access to this kind of finance is also extremely tight, which means the small business community has very few options available when they need funding.

He says: "There were nearly five thousand business liquidations in the first quarter of this year – an increase of 7.1% on the previous quarter, and a shocking 56% increase on the same period a year ago and some of this damage is caused when businesses can't get the funding they need."

These sort of statistics may lead many businesses to look for unregulated, short-term lending from unregulated cowboy 'advisers' who give you just the advice that will make sure that their pockets are lined. If you are struggling, and have been unable to get hold of credit, you have to talk to a regulated broker right away.

A regulated broker will not only be able to show you proof of past successes with small business clients, but they will also be able to show you that they are officially regulated by the Financial Services Authority. This is a kite mark to prove that whatever they do for you, it's in your best interests.

SOURCE: NACFB, 16/09/09

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