Lloyds TSB lends helping hand to catering industry

The move follows calls from small and medium sized businesses (SMEs) for extra support to help battle the recession. New research by Lloyds TSB Commercial found that 46% of hotel, catering and leisure businesses would like more support to help them beat the downturn, with almost half (44%) predicting that the recession will be more severe than previously anticipated. The report, based on the responses of 500 UK firms with an annual turnover of up to £15 million, showed that 71% of the 52 hotel, catering and leisure firms questioned would like further guidance on attracting custom; two thirds (67%) need advice on keeping costs down; and 58% said they need help managing late payments and cash flow. The new programme aims to provide businesses with online guidance and information, as well as face-to-face expert advice. It includes a series of 120 nationwide advice seminars, providing the bank's 600,000 business customers with specialist advice from Lloyds TSB and independent experts. The events cover the common challenges facing companies trading through a downturn, including business planning, managing finances, finding and retaining customers and working with local business advisors. The aim of the events is to also help build relationships between small firms, accountants, business support agencies and Lloyds TSB business managers. In addition, the bank has launched a free advice website, www.lloydstsb.com/businesssupport which includes dedicated guides covering topics such as how to cut fixed monthly costs, how to get a better deal from suppliers and how to retarget a business for changing times. John Maltby, managing director, Lloyds TSB Commercial, said: "British hotel, catering and leisure businesses are going through an extremely tough trading period and many have already made some difficult decisions to help mitigate the impact of the recession. But, as the economy continues to falter, it is critical that businesses get the support they need. "There is no doubt that availability of funding plays a key part in the survival of any business and we are continuing to increase our lending in the sector. But we should not forget the importance of sound business advice in helping build a long term successful business." Other highlights of the report include: nearly half of businesses surveyed have increased advertising activity, one in three have reduced staff number or hours, and cut prices of services and/or goods, and just over a quarter of businesses have implemented pay freezes for staff.