Chancellor George Osborne has stated that when banks refuse loans to small and medium-sized firms, they will be compelled to assist them procure alternative sources of finance.
Mr Osborne said the government would encourage the growth of “alternative finance providers”, a major part of the financial and technology (or FinTech) sector to which Osborne pledged £100m of additional investment.
In a joint report by the Treasury and the Department for Business, Innovation and Skills (BIS) it was quoted that: “The government has decided to legislate for a mandatory process in the Small Business, Enterprise and Employment Bill, where SMEs will be forwarded on to platforms that will help them be linked up with alternative lending opportunities”.
Source: Insolvency News