- Not all SME credit providers will be required to forward on details of SMEs they reject for finance, as this would cause excessive burdens for smaller SME credit providers, affecting their ability to compete effectively. Therefore the process will be mandatory only for larger credit providers.
- SMEs will remain in full control of the process, giving their consent for their information to be shared with alternative lending portals.
- The information on SMEs that will be shared by the traditional credit providers with the alternative finance portals will concern only key business information, such as name, amount of finance and type of finance requested among others.
- The scope of the mandatory process will not be limited to loans but also to other lending products deemed relevant for SMEs financing.
- Information on SMEs will be shared only with alternative finance operators that meet good standard of practice and that suitably protect SMEs that choose to have their information forwarded.
If you’re interesting in setting up your own P2P lending platform, read our case study, visit our technology pages and get in touch with our team.
HM Treasury, Department for Business Innovation & Skills (2014). Help to match SMEs
rejected for finance with alternative lender.
Image credit to: Doug88888 http://bit.ly/1xtts3C
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.