07.08.2014
The CDFA welcomes George Osborne’s announcement that the Government will introduce legislation that will require banks to refer decline customers to alternative providers. The proposed new rules mean that high street banks will have to offer to connect SMEs that they decline for loans to alternative sources of finance.
This is good news for the small businesses in the UK that currently struggle to find finance.
Alternative sources of finance, like community development finance institutions (CDFIs), are there to help business owners, but many people aren’t aware of the alternatives to banks. The new legislation will provide a major boost to CDFIs and other alternatives such as crowdfunders and invoice traders. The CDFA is working alongside many of these alternative funders through the www.alternativebusinessfunding.co.uk portal.
The CDFA is also working with the British Bankers’ association (BBA) through an existing referral platform, which enables all the high street banks to voluntarily refer declined customers to a CDFI.
CDFIs have been helping Britain’s small businesses access funding for many years, and have already helped over 35,000 small businesses get finance. This figure could rocket with the help of the new legislation.
Find out more about your local CDFI at www.findingfinance.org.uk