FSB welcomes new consultation on access to finance
The Federation of Small Businesses (FSB) welcomes an announcement by the Chancellor to launch a consultation later today on measures to help small firms who have been rejected for a business loan.
Speaking at the FSB's 40th anniversary conference later this morning, the Chancellor George Osborne is expected to announce a way to make it easier for small businesses to find alternative loan providers. The consultation asks whether the government should legislate to ensure lenders release information on small businesses they reject for finance. That way viable firms can be identified and approached by alternative lenders.
John Allan, National Chairman, Federation of Small Businesses, said:
"Accessing finance is essential for small firms to invest and grow. Recent years have seen those firms struggle to get hold of the finance they need. While lending to small businesses is dominated by the big five high street banks, today's announcement could help businesses find alternative lenders and introduce more competition into the market."