Launching today, the government have announced a new scheme with the aim of ensuring small businesses will have access to alternative finance options, should their bank reject their lending requests.
Barclays, Lloyds, Clydesdale HSBC, Santander, Yorkshire Bank, Bank of Ireland, Danske Bank and First Trust Bank have all signed up to share details with Funding Xchange, Business Finance Compared and Funding Options.
Funding Xchange, Business Finance Compared and Funding Options will then introduce small businesses to alternative finance providers who may be able to assist.
Chancellor of the Exchequer, Philip Hammond said:
“Small- and medium-sized businesses are the backbone of Britain’s economy and it is right they have access to a wide range of sources of finance.
A refusal from a big bank should not be the end of the line for a small business and, thanks to the finance platforms being launched today, now it won’t be.
We are determined to maintain the prosperity of our business sector and to support an environment where small businesses can grow and thrive.”
This follows news that in 2015 over 300,000 small and medium businesses applied for a loan or overdraft facility. Over a quarter of these requests were declined with a minute number being referred to external lenders or introducers.