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Bank Lending

HM Treasury's new business lending scheme - comment from P2P lender ThinCats

By CreditMan Tuesday, November 1, 2016

Kevin Caley, Founder and Chairman of ThinCats, said:

“After almost two years and several false starts, it is great to see this important initiative finally going live. It would appear that we now have real progress, and ThinCats will be seeking to play its part in helping the thousands of small businesses, with viable propositions turned down by banks each year, access the vital funds they need to expand. Businesses face a £4billion annual funding shortage from declined business loans in the UK often through no fault of their own. Usually this is due to banks feeling over-exposed in a particular sector or, because the business has ambitious growth plans. I have no doubt that many of these businesses are worthy of funding and will reap the benefits of this new scheme.

“If this new initiative works it could help to improve awareness among small business of the funding options that are available. Most SME owners tend to seek loans from their main bank with little or no shopping around, and those that end up being rejected often just give up looking. Alternative lenders like ThinCats often have a different approach and we welcome the initiative.”