The government is to make £100 million available to small firms through alternative lenders.

Thursday 31 May 2012

Posted by James Curtis

UK-based limited company contractors struggling to acquire finance could be tempted to turn to alternative lenders.

That is after the government promised to make £100 million available to small businesses via internet lenders and other alternative providers as part of its £500 million Business Finance Partnership.

The plans are designed to make funding easier to access and according to business secretary Vince Cable, come at a time when such enterprises are being overlooked by many mainstream banks.

"As businesses are continuing to struggle to get credit from their banks, developing alternative lending channels is essential so firms are less reliant on banks," Dr Cable commented.

"Our aim is to create a more diverse financial infrastructure which better serves the needs of our small and medium-sized companies."

The comments come shortly after Chris Sullivan, chief executive of the UK Corporate Banking Division at RBS told the BBC's On The Money podcast that major banks are willing to lend but small businesses are being cautious with the funds they already have.

By Victoria McDonnell

Get in touch

Please select your type of enquiry:

Brookson on Twitter