A NEW source of finance is now available to give East Lancashire's would-be entrepreneurs a better chance of starting a successful business.

East Lancashire Moneyline - a government-backed non-profit organisation - has launched two business loans, each offering £10,000 over a repayment period of up to five years.

There is a start-up loan to help new businesses off the ground and a support loan to help existing firms to consolidate and expand.

Phil Duckworth, of East Lancs Moneyline, said it could be difficult for start-up and relatively young businesses to obtain financial support from mainstream banks and building societies.

"Despite all their advertising, which would suggest they are there to help, many are reluctant to loan money to businesses with unproven track records that cannot demonstrate sustained profit and success," he said.

"This means that many new businesses in towns such as Blackburn and Darwen and throughout East Lancashire cannot even get off the ground.

"In some cases, mainstream banks and building societies can also be reluctant to help established businesses in need of financial support. They may need a cash injection to help them consolidate after a tricky period or for new equipment to help them expand. However, they too can be deemed 'risky' and turned away."

Phil said East Lancs Moneyline was able to step in as a 'missing link' to help those businesses. "As a not-for-profit organisation concerned with the regeneration of East Lancashire, we can take a more flexible approach with our lending to maybe help those who have been turned down by the mainstream banks and building societies."

The basic interest rate, 16 per cent, is higher than traditional lenders, but Phil explained that the organisation had to cover its costs. "We are not in competition with the banks," he said. "Quite often, we are the last alternative for people who have been turned down elsewhere.

"We are open to approaches from anyone with either a business plan or who is already involved in the running of a company, providing they are based in East Lancashire. East Lancs Moneyline is all about money being both loaned and spent locally."

An information pack with full details of the new loans can be obtained from East Lancs Moneyline's office in Lord Square, Blackburn, Tel: 01254 696203.