A new government scheme to help small businesses turned down for loans find alternative means of finance launches today (1st November). Under the Government’s bank referral scheme, RBS, Lloyds, HSBC, Barclays, Santander, Clydesdale and Yorkshire Bank, Bank of Ireland, Danske Bank and First Trust Bank will be obliged to offer to pass on details of businesses they are declining to three finance platforms – Funding Xchange, Business Finance Compared and Funding Options.
These platforms will then help the businesses get in touch with a provider of alternative finance.
Mike Cherry, national chairman of the Federation of Small Businesses (FSB) said “Small firms struggling to access finance will now automatically have a new way to get the support they need to invest and grow. FSB pushed hard for these reforms, and today’s announcement is good news as the government delivers on them”
Conrad Ford, founder and chief executive of Funding Options said “For decades, UK governments have fretted that most firms only approach their bank when seeking finance, and then give up if rejected causing untold economic harm. Business owners are busy people, and it’s only recently that online solutions like Funding Options have emerged to navigate the complex alternative finance market.”