The government is devising new ways to assist SMEs and thus aid economic recovery and growth. The latest strategy in supporting smaller companies involves urging banks to increase the volume of loans they provide to SMEs, the Financial Times reports.
This measure comes following a survey commissioned by HM Treasury, which revealed that SMEs are having a hard time finding funding and that lenders need to try harder to provide better value-for-money.
The roll-out of a new website, called Business Banking Insight, was recently announced by Chancellor of the Exchequer George Osborne. It will give smaller companies the chance to see how banks and their services are rated by SMEs. The initiative is supported by the Federation of Small Businesses (FSB), the British Chambers of Commerce (BCC) and the British Bankers’ Association (BAA) and aims to increase competition among banks.
The article features a comment by BBA chief executive Anthony Browne, who says it will be every bank’s desire to be featured at the top of the ratings and thus competition between them will be sparked, bringing forth more innovation, new products and better services.
According to John Allan, national chairman of the FSB, the new website will provide valuable insight into how small firms view the services they receive from their banks, based on a number of factors, he told The Telegraph.
In its quest to show more support to SMEs, the government is also contemplating imposing a rule for banks to refer small businesses which they turn down for credit to alternative lenders.
If you are a business looking for funding, why not contact Jelf Commercial Finance and see how we can help. Call Colin Hall-Tomkin on 07921 471772 or e-mail colin.hall-tomkin@jelfgroup.com
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