Has the economy turned the corner or are we all just getting on with it? | Blog | Foundation East

Has the economy turned the corner or are we all just getting on with it?

Either way applications for finance have more than doubled.

Through-out the recession Foundation East has received enquiries from potential customers who ultimately have not applied for finance as they have decided not to go ahead with their plans. People have concluded that they will not start up a new business as it was not the right time; that they will not replace or upgrade their equipment as it is better to batten down the hatches and persevere with their current kit; or that they feel it is the wrong time to expand because the statistics and the media suggest the economy is not right for businesses to grow.

That has changed in the last few months.  Since February the level of enquiries has noticeably increased.  This has led to a larger number of applications for loans with Foundation East receiving more than twice the number of requests for assistance in the months of April to July this year than in the same months of 2012.  Now that money is being released in ever larger quantities.  More new businesses are being started with Foundation East’s assistance and existing businesses are being developed and expanded.

These businesses come from a wide variety of industries and include a golf centre, a record company, a road markings firm, a funeral service, a pleasure boat trip provider and a farmer.  New traders include a cake decorating equipment supplier, a security systems installer, a specialist travel agent, an ironing service, and a flower shop.  Of particular note are a new construction firm and an engineering consumables and power tools supplier.

No one dares whisper “Green shoots of recovery” in case they are the one person that jinxes the recovery of the whole of world trade.

Statistics suggest that the economy has not yet recovered and so our clients appear to have decided to just get on with it.  Their attitude will lead to a bit more of a feel good factor and it is that positive attitude that will see the economy turn around.

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    Foundation East

    Foundation East

    Foundation East is the only Responsible Finance provider offering loans and business support to businesses across the East of England. We create £15 of social value for every £1 we loan. To continue helping local entrepreneurs, we're becoming increasingly reliant on funds raised through members buying our CITR shares. Buying CITR shares brings many social, economic and financial benefits.

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