Government to Force Banks to Forward Small Businesses to Alternative Finance Providers
George Osborne and Vince Cable are preparing to push through legislation that will force high-street banks to automatically send small businesses rejected for loans to alternative funding companies. According to the Telegraph the legislation, which is to be included in the Queen’s speech on June 4, is designed to change the bank’s dominant position in small business lending and boost the role of alternative finance, such as crowdfunding and peer-to-peer lending. Osborne made it clear in his 2014 budget speech that small and mid-sized businesses will play a vital role in the economy’s future and the treasury feel that banks’ dominance is having a negative effect on the growth of this sector. According to the Telegraph the chancellor and other key government members are determined to passing... »