A sign that the country’s financial woes are far from over came when the Bank of England – in an unprecedented move – ordered UK banks to raise a further £25 billion in capital  by the end of 2013 to shore up their balance sheets against any future crises.

That’s a wise move, you might think.  After all, the bigger a bank’s reserves the less likely it is that its depositors, and taxpayers, will suffer in another meltdown.

And don’t dinosaurs such as HSBC have plenty of subsidiary operations that they can sell off in order to raise the new capital needed?

To an extent, yes.  But experience tells us that the City fat cats are much more likely to simply take a further £25 billion out of the wider economy by cutting lending even more than they already have done, rather than slim down their own empires.

If they do, it will be the thousands of small and medium-sized capital-starved companies in the manufacturing heartland of the West Midlands that will bear the brunt.

picture of a financial adviser shaking hands with his clientAt The Whitehall Partnership, we know how hard it is for our entrepreneurial clients to raise working capital for their companies. As a result, we have built an enviable reputation by delivering quality financial advice in Birmingham.

The banks long ago assumed an all-denying “the computer says no” when it comes to lending to small businesses.  Trade minister and former HSBC chairman Lord Green openly said as much in the House of Lords.

In fact, it is estimated that the volume of bank lending to this vital wealth-creating industrial sector has shrunk by £150 billion since 2008.

Happily in the case of some owner-managers there is a way round the short sighted intransigence of the bank’s lending strike.

As corporate financial advisers covering Birmingham and the West Midlands we have been able to show how directors can free up cash from their personal pension pots and put it to work in their company by financing much- needed expansions of their operations – while benefiting from a tax-break.

This is just one example of how we might be able to help you.

It goes without saying that any businessman or businesswoman contemplating such a move should do so only after talking to expert, independent, unbiased financial advisers such as The Whitehall Partnership.

Our aim is to make investing straightforward and safe, and we have developed a suite of financial services to help individuals to protect and grow their wealth and personal finances both now and for the next generation.

For a free, no-obligation, no strings attached initial consultation call us on 0845 43 49 250 today.


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