SME lending still too ad hoc
Tracy Ewen, managing director at IGF Invoice Finance, commented on the news that banks are slowing growth by not lending enough to small businesses.
She said: “The ad hoc measures currently in place don’t yet make a meaningful difference to small businesses, either in terms of the funding available or the education of small business leaders on the best sources of finance.
In the world of start-ups, the uniqueness and originality of an idea is often the basis of a successful business. Different sources of funding cater to different needs within the market, but it is often the smaller lenders – which invest time in understanding a business based on its own merits – that hold the solution to small business growth. As the UK emerges from the downturn, SMEs, which should be leading the economic resurgence, all too often struggle to capitalise on the change because the government isn’t working fast enough to make its SME lending schemes coherent.”
