Simple Step 4

LA's 4th move would be to reintroduce a floating charge for banks on business finance.

For those not familiar, a New Zealand case that went to the House of Lords some years ago, removed the ability of banks to get there money back if a company went bust by having first rights to the money owed to that company by debtors.
This means banks face more risk in lending to business. this has led to a culture of the banks almost always asking from personal guarantees from directors. This is anti enterprise and makes the Limited company status pointless. We need to legislate to bring this back. Why would any successful business person expand their business if after years of work they are told if they borrow, not only will they risk their business, their livelihood, but also their home. What is the incentive for someone that is comfortable to go home to their partner and say, " Yes lets gamble the house." There is non.

Again this move would cost the government (The Tax Payer) nothing. It would re inject confidence into businesses, give confidence to the banks and oil the wheels of the economy.

LA hastens to add, if the banks had personal guarantees they could not have first charge on book debt, they cannot have it both way.

LA