The bank referral scheme insists nine of the UK’s major banks to offer business owners the option of having their details passed onto alternative finance platforms, including Funding Xchange, Business Finance Compared and Funding Options.
Providing a link between these businesses and the listed comparison sites will help them find an alternative finance provider.
It’s suggested that around 100,000 of loan applications from small and medium businesses are refused every year.
Alex Fenton, Founder and CEO of alternative finance solution, Gapcap, commented: “Alternative Finance is only an alternative because business owners do not know about it yet.
“Once branding SMEs the lifeblood of the UK economy, the government is finally going beyond rhetoric and extending a firm shoulder propping up smaller businesses.
“The altfi industry is no longer run by mavericks and it is great news that these funding solutions are gaining the credibility they deserve – shaking off the negative image that has stuck with them in previous years.”
