Small Business Lending Referral Scheme Introduced
The Government has introduced a scheme that should help a number of small businesses obtain alternative finance that have initially had there application for a business loan turned down by one of the major UK banks.
If a small business requiring finance is turned down by one of a specific number of high street banks then the bank in question must refer the customer to one of three lending platforms – Funding Xchange, Funding Options or Business Finance Compared. These platforms will then look to introduce the customer to alternative finance providers.
Apparently, in the region of 100,000 small businesses have their applications for finance turned down by major lenders in the UK every year. We are sure that you will agree that is a considerable number of businesses. Some of those businesses may even have to stop trading as they have not been able to sort out funding. Therefore, it sounds like this scheme could be of huge benefit to many small businesses here in the UK.
There are no doubt some businesses that, having been turned down by their bank for a loan, have felt it necessary to revert to trying to obtain funding from lenders that charge extremely high rates of interest. Perhaps this new scheme will mean that fewer small business owners will feel it necessary to approach lenders charging such very high interest rates.
So, if you are the owner of a small business and have been declined for a loan by one of the banks taking part in the above scheme then you might wish to consider applying through this new lending referral scheme. You may also like to consider getting in touch with ourselves so that we can refer you to a specialist commercial finance broker who may also be able to assist you in sourcing suitable finance from one of the panel of lenders at their disposal.