Financing a Private Sector Recovery

Government Calls for Market-led Small Business Lending

The Government has called for lending to small firms to be more market-led and less state-regulated, in a review announced by Business Secretary Vince Cable. The proposals have been outlined in a government green paper, Financing a Private Sector Recovery, and call for market-led solutions to small business funding needs. The paper includes proposals to improve access to bank lending for small firms, as well as encouraging alternatives to traditional lending, such as private equity, venture capital and business angel investment. It suggests that banks and private finance institutions should offer a more diverse, competitive range of funding options, with the Government just bridging the gaps. “I’ve heard the problems businesses are facing in getting bank loans up and down the country... »

Cable Looks to Boost Small Business Lending

Cable Looks to Boost Small Business Lending

Financing a Private Sector Recovery In an attempt to increase lending to small business the Business Secretary, Vince Cable, has been criticial of banking institutions by saying that banks are "…not acting in the national interest. I don’t think they get it." Mr Cable has suggested that there may need to be a "carrot and stick" approach to bank dividends and bonuses. In a report released today Financing a Private Sector Recovery, HM Treasury and the Department for Business Innovation and Skills (BIS) put forward the case for "sustainable and secure sources of finance for investment". Both Vince Cable and The Chancellor of the Exchequer, George Osborne, acknowledge the importance of UK SMEs as the focus for this finance drive by stating that: &ldquo... »