Credit, Collections & Insolvency News
The British Business Bank (BBB), which helps small businesses access finance, has warned that smaller firms face a challenging few years on the back of the economic downturn.
The BBB said lending to start-ups and the smallest businesses could be particularly vulnerable to the impact of economic uncertainty as they often do not have collateral.
The BBB it added, could lead to an increase in credit losses if more businesses default on their loans. The BBB highlighted its performance in the last financial year as part of a report.
Catherine Lewis La Torre, CEO, British Business Bank, said “The British Business Bank has successfully delivered against the strategic priorities we set at the beginning of the year.”
“We have increased our impact and market reach to smaller businesses across the UK’s regions and Nations and designed innovative programmes while at the same time generating an attractive return on capital employed.”
“We have also made good progress on embedding our revised mission, with sustainable growth at its core, into everything we do.”
“Despite this success over the last financial year, we are aware that areas of economic and geopolitical uncertainty remain. The serious headwinds that the economy is encountering make a national economic development bank an invaluable strategic asset, and we are ready and prepared to play whatever role is required to support UK smaller businesses.”
Lord Smith of Kelvin, chair of the British Business Bank, said “We know that things remain tough for many smaller businesses as they work to recover from the Covid-19 pandemic so the importance of both financial and non-financial support for smaller businesses should not be underestimated.”
“Supporting smaller businesses in challenging and uncertain times is absolutely what the British Business Bank is for. The flexibility designed into the way we operate means that our role in supporting their access to finance can adapt to the prevailing economic circumstances, and we stand ready to do what is needed in both good times and bad.”
