A member of the UK200Group comments on news that Britain’s SMEs could benefit from an extra £2bn
A member of the UK200Group of independent accountancy and law firms has today commented on news that Britain’s SMEs could benefit from an extra £2bn in growth capital as pressure intensifies on UK banks to refer companies to alternative finance providers if they have been refused a loan. Alternative Business Funding (ABF) – a portal for 32 of the UK’s alternate finance providers – states that a new “bank referral” legislation could fast-track more than 100,000 small businesses to alternative lenders, if properly enforced.
Jonathan Russell, partner, UK200Group member firm ReesRussell, said: “Alternative Business Funding (ABF) has only been created because of a failure of the mainstream banks to either recognise a reasonable return to investors with them and to adequately service, in particular, the smaller business needs. If it was not for the needs of businesses to have access to clearing bank facilities, many SMEs would be happy not to use the main banks at all let alone for finance. More and more small businesses are going directly to the alternative lenders.”
Established in 1986, UK200Group is the leading mutual professional association in the UK with some 150 offices of quality-assured member accountancy and lawyer firms throughout the UK totalling over 550 partners, 150,000 business clients and global links in over 50 countries. UK200Group provide services and products that are designed to enhance the business performance of its members.