Lenders fear banks will derail referral scheme to help small firms
Businesses seeking loans should be offered alternative providers to banks as soon as possible, or else a Government-backed initiative to kick-start lending will fail.
So say alternative finance providers, who fear banks will ‘derail’ the referral scheme announced in August.
The Government-owned British Business Bank last week called for potential delivery partners to apply to be part of the referrals scheme to help small firms.
Unstable: Businesses seeking loans should be offered alternative providers to banks as soon as possible, or else a Government-backed initiative to kick-start lending will fail
Under the initiative, ten major banks will be obliged to offer any firm whose loan application they have rejected a referral to a choice of new online platforms, which will put the firms’ needs to a range of alternative finance providers. Applications are now open for those interested in providing platforms.
But Norman Carson, director of business development at Boost Capital, said: ‘If firms do not get referred until after a long decision process, I fear it will destroy the referral programme before it gets started.’
- Is it time to buy back into gold? As stock markets wobble,...
- Defeat devices an 'open secret' at Volkswagen for almost a...
- Fears for fragile Russian economy as collapsing oil price...
- Britain's benefits bonanza: 29 UK cities have 'low wage,...
- GlaxoSmithKline begins search for new ceo to succeed...
- Another day of shame for Tesco: Grocer faces £500m fine over...
- Tesco purposefully and systematically delayed paying...
- Buy-to-let landlords 'storming the UK housing market':...
- Table service for Big Macs: McDonald's to introduce waiters...
- Bean counters who got dragged through the mud: KPMG checks...
- We want to sell half our home to our daughter and use the...
- British supercar maker McLaren planning to more than double...