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Bank Lending

Chancellor's boost to Alternative Finance sector welcomed

By CreditMan Wednesday, August 6, 2014

The measures announced today by Chancellor George Osborne to support the rapidly-expanding alternative finance sector were warmly received by the Alternative Business Funding collaboration (ABF).

Louise Beaumont, Chief Sales and Marketing Officer of Platform Black - a leading provider of supply chain and invoice finance and a founding member of the ABF- commented: "This will be a major breakthrough for the UK's businesses which have been struggling to access the finance they require from traditional sources."

"The recent Trends in Lending report from the Bank of England confirms that the Funding for Lending Scheme does not go nearly far enough to address the lack of funding available to SMEs. We know that the High Street banks currently turn away around 40 per cent of loan applications from SMEs and evidence suggests that around one fifth of those do not approach providers of alternative finance because they are simply unaware of what is available. Legislation to direct the banks to pass these customers on to alternative sources is a major step forward. The alternative finance providers stand ready to help these businesses and get the UK economy firing on all cylinders.

"We are particularly encouraged by the Chancellor's pledge to ‘cement the UK's position as the FinTech capital of the world', which is precisely what the Alternative Finance sector has been seeking to achieve. It shows that the Government has been listening and reinforces the position of alternative finance in the mainstream financial services marketplace".

Louise Beaumont has been actively involved in the consultancy process and has acted as an adviser to Number 10, HM Treasury and the Department for Business, Innovation and Skills. She is now part of the working group that will be taking the implementation forward.