It has been reported that the Chancellor is considering forcing banks to refer SME’s to alternative funders if they are unable to fund them.
The Government is reported to be considering putting legislation in place to make it a legal obligation to refer SME’s to an alternative source of finance if the company in question cannot provide funding.
Whilst the governments focus on the difficulties faced by SME’s in securing funding to allow them to trade and grow is welcome it remains to be seen whether this new proposed policy will make any difference to SME’s.
The lack of availability of bank funding has already meant that other institutions and sources of funding have become more mainstream such as asset based lending and crowdfunding.
An explanation of these opportunites are explained on our other blog 'Shake the Money Tree'
Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.