LONDON, March 20, 2012 /PRNewswire/ --
Powwownow: one of the first three companies in the country to benefit from new Government Scheme.
Last night saw the launch of Chancellor George Osborne's new Government Scheme which aims to make it simpler and cheaper for businesses to borrow money. The National Loan Guarantee Scheme (NLGS) allows businesses to access loans with an interest rate one per cent point lower than those available outside the initiative; and having experienced the process first hand, leading Conference Call provider Powwownow says this can only signal a positive step in the right direction.
"The launch last night signalled a marked effort by the government to make good on their promises to encourage investment", says Andrew Pearce, Co-founder and CEO of Powwownow who met with George Osborne yesterday to discuss the scheme in detail. "The fact that this one per cent is given in an instant cash kick back is fantastic for businesses, whilst the government protection on the loan means banks are more inclined to lend too".
The deal itself was very simple, and in stark contrast to the old Small Firm Loan Guarantee Scheme, involved no additional applications or paper work.
The Richmond-based company signed their loan agreement with Barclays who were interested and proactive in wanting to lend. Andrew continues, "This loan allows us to finance acquisitions and expand the business at a much quicker rate than might have been possible otherwise. It also allows for investment in more staff and job creation which is something that benefits everyone from ourselves, to the individual, to the whole economy at large."
As a member of a number of entrepreneur clubs, Andrew also says, "There's constant talk amongst fellow entrepreneurs about how difficult it is to secure finance in today's economic climate. The fact that this isn't just hot air, but actually a practical benefit to many, fills me and others with improved confidence in our economy and the future of small business growth"
Powwownow's loan is unsecured and they are pleased to promote the benefits of this type of lending, "If businesses don't have to secure their office or other assets against the money borrowed I believe they will be more inclined to take calculated risks, and taking such risks is what growing business is all about".
Powwownow was founded in the UK in 2004, offering customers low-cost conference calling facilities with the ethos of no booking, no billing, no fuss. The customer does not need to book a conference room and never receives a bill from Powwownow. They only pay the cost of their own call, which is added to their standard telecoms bill. The company now operates in 15 countries worldwide including the US and major European markets and recently acquired web conferencing and business collaboration providers, Yuuguu. Turnover for 2012 is predicted to reach £10m.
Powwownow employs 56 people and is based in Richmond and Manchester.