Over 100,000 small businesses could benefit from the newly approved bank referral legislation, which could increase SME revenue by £2bn within the first 12 months.
The bank referral legislation, which recently received the Royal Assent, could fast track thousands of small businesses to alternative business funders. The alternative business funding (ABF) portal has already helped 2,500 small businesses gain funding and is hoping to capitalise on the bank referral legislation.
Small businesses could soon be turning to alternative funding if the British banking industry is forced to adhere to rules created by the Basel committee on banking supervision. The committee are demanding that a 300 per cent risk weight to be applied to small business.
‘‘With a potential £2billion in alternative small business funding as a result of the banking referral regulation, it is vitally important that the party or coalition government elected in May drives the implementation phase through as quickly as possible.’’
‘‘This increase in alternative funding will double the size of the UK’s thriving alternative funding sector,’’ said Adam Tavener, chairman of pensionledfunding.com and catalyst for the ABF collaboration