The loan guarantee scheme for small businesses will protect banks against the risk of lending to firms.
It will help inject much-needed cashflow into business, an issue that car dealers are fully aware of. This, the industry hopes, will encourage people to buy cars again.
This will particularly help the fleet car industry, which accounts for half of all new car sales. Dealers report that the desire for cars is out there – firms simply can’t raise the cash required to buy them.
The new Government scheme will hopefully inject sufficient cashflow into the economy to get things moving again.
Lord Mandleson is expected to unveil the scheme this morning. Car Dealer will report on the news as it happens.