Under a new government scheme launched last week, small businesses who have had finance requests rejected by banks will be matched with alternative finance options. Nine of the UK’s biggest banks will pass on the details of rejected small businesses to three finance platforms who will then share these details with alternative finance providers, facilitating a conversation between the business and a finance provider.
These new rules make it easier for businesses to access finance, giving permission before their details are shared to Funding Xchange, Business Finance Compared and Funding Options.
Research shows that 71% of businesses seeking finance only approach one lender and many give up rather than seeking alternative investment options.