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Government's Funding for Lending Scheme still isn't meeting the needs of individuals or businesses

By CreditMan Tuesday, June 4, 2013

Paul Aitken, CEO of borro, comments on today's update on the Government's Funding For Lending scheme.

Paul Aitken, CEO and Founder of borro, commented: "It is a shame that we find ourselves with yet another announcement that the Government's Funding for Lending scheme isn't meeting the needs of both individuals and businesses - it's a sorry state of affairs when banks continue to actually reduce the amount that they lend out. Looking at small businesses in particular, so many are struggling to keep their heads above water in the on-going economic climate, without access to shareholder cash or cash reserves that some of the larger companies can tap into. With tight credit conditions it is no surprise the SMEs are turning to what have been traditionally seen as 'alternative' sources of finance. Our online personal asset-lending model sees over 60 per cent of business come from SMEs who are looking for a more accessible route to obtaining the finance they require.

"At borro the average loan value to small business owners and the self-employed rose 41 per cent, from £17,000 to £24,000 last year alone. The average loan term is three to four months, with luxury cars, fine art and antiques and more being used as collateral. We are witnessing continued growth particularly when it comes lending to small business owners and the self-employed, proof that alternative forms of finance are becoming more mainstream."

borro offers small business owners, entrepreneurs and all other customers short-term loans of £1,000 to £1,000,000. Loans are secured against assets including fine art, antiques, luxury cars, luxury watches, diamond jewellery, gold, fine wine and other high value assets. A transaction with borro is transparent, with all rates and processes made clear from the outset. There are no credit checks and loans can be redeemed at any time without penalty.

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