Paul Aitken, CEO of borro, comments on today’s announcement from George Osborne on the Funding for Lending extension to SMEs
Paul Aitken, CEO and Founder of borro, commented: “Today’s announcement that the Chancellor is to extend the funding for lending scheme to small businesses comes as little respite, particularly as recent figures from the Bank of England have shown that over the 3 months leading up to February, lending from banks to businesses actually fell by £5 billion. Many UK lenders have said that this is down to lack of demand from businesses, most likely owing to diminished confidence. However, if the Chancellor’s pledge is realised with success, it might finally allow SMEs some faith, not only in their business but in the UK’s Government. However, there is a lot to prove and to repair; there has been no real change in the state of the economy, which remains weak as highlighted by the recent downgrade of the UK’s credit rating by Fitch to AA+, and the sense of limbo still lingers while government schemes slowly take effect. Enterprise in Britain needs a boost and it needs to start with small and medium businesses.
“Our online personal asset-lending model has thrived since borro was launched five years ago. We have seen a huge increase in the number of small business owners unlocking finance from valuable and unusual personal assets in order to capitalise on business opportunities; the average loan value to small business owners, who currently represent over 60% of our client base, rose 41 per cent last year, from £17,000 to £24,000. This continued growth is proof that non-traditional forms of financing are becoming more and 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 repaid at any time without penalty.