SMEs who are rejected for business loans by the Royal Bank of Scotland are to be pointed in the direction of Peer-to-Peer alternatives in order to improve their chances of accessing business finance.
The scheme began at the beginning of this month in Scotland and the south-west, according to the Telegraph, and will involve referrals to Funding Circle and Assetz Capital, both established P2P lenders for business. The former has funded over £520m of loans to businesses, since it was set up in 2010, by bringing likeminded lenders and investors together.
According to research conducted by the Department for Business, 50% of businesses that apply for funding are rejected, so the Government is pushing for alternatives and ways around this in an effort to encourage British businesses regardless. The ‘GREAT Britain’ campaign was established by the Government in 2013 with a similar aim – to “promote the UK internationally as a great place to visit, study and do business” – and offered British people resources, advice, and case studies to encourage them to start and maintain their own businesses.
As it’s a clear priority for the Government, other banks have also been involved. RBS aren’t the first big bank to establish a link to peer-to-peer – Santander connected with Funding Circle last year. Andrew Holgate, of Assetz Capital, sees that “there’s a genuine desire emerging for banks to offer more support to SMEs by introducing alternative lending industry options”.
Wellesley & Co. offer a different approach to business lending, and all proposals and applications are individually considered by the Wellesley Credit Committee. The approach is honest and straightforward, with a response time of four hours after the initial application.
To find out how Wellesley & Co. could help your business, read more here.