The good news for the British alternative finance sector is not over. In the last days, the managing director of the British Business Bank declared that by 2016 they want to have a scheme in place in order for banks to refer small firms rejected for loans to alternative finance providers. The Bank is already looking for P2P portals to partner with.
This follows the initiative announced last year by Britain’s finance ministry, which would require 10 banks including Royal Bank of Scotland, Barclays, Lloyds Banking Group and HSBC to offer businesses whose loan applications they have rejected a referral to alternative finance providers. Those four banks currently provide around nine out of every 10 business loans in the UK. However, British authorities understood early on the potential of alternative finance in the country and decided to support its development as well as to funnel it in the right direction, that is making it an alternative, efficient source of finance for SMEs.
Image credit to: Mark Colliton http://bit.ly/1anqq8R
About the author - Irene Tordera
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.