Following Wednesday’s Budget announcement, BusinessFinanceCompared.com, the finance marketplace operated by Bizfitech, is delighted to be chosen as one of three platforms behind the new bank referral scheme.
After a thorough selection process, the Treasury has announced its intention to designate the Nottingham-based platform to assist small businesses who have had a funding application rejected by a bank.
The site has already helped thousands of businesses find the finance they need to succeed and grow, by helping them narrow down the market to find the right deal for them. It is backed by Blenheim Chalcot, one of the UK’s leading venture builders.
A viable alternative
The referral scheme, announced by the Chancellor in 2014, aims to help businesses struggling to access finance via the banks. According to figures released by the Bank of England last year, June 2015 saw the largest drop in lending to small businesses since records began.
Likewise, British Business Bank (BBB) survey evidence suggests approximately 100,000 small business finance applications are declined by banks each year. Under the new scheme, rejected applicants will be offered the opportunity to be referred to the designated platforms – giving them a second chance at getting the funding they need to grow.
BusinessFinanceCompared.com’s unique approach helps businesses find the right finance option for them. Their unique technology allows SMEs to check their eligibility and calculate certainty of being approved by different finance providers – giving them the confidence to apply. As an independent comparison company, small businesses can also be confident that they will only receive the options which are the best fit for their requirements with the choice of lender remaining with them.
Last year the platform and ComRes carried out research in Nottingham, which showed that 45% of businesses surveyed have delayed expanding operations due to problems accessing business finance. They also found that fewer than 1% had accessed peer-to-peer finance, equity crowd funding or merchant cash advance – all of which are available to small businesses through the site.
‘Committed to helping businesses’
Commenting on the news, Olly Betts, CEO of BusinessFinanceCompared.com, said: “Today’s announcement marks a turning point for businesses looking to secure finance but for whom the banks are unable to help. We are committed to helping businesses flourish by connecting them with the finance they need to grow, in a clear, transparent and independent way.
“Access to finance can often make or break a small business. It is very encouraging to see the Government take the initiative and press ahead with a scheme to better enable businesses to access finance when more traditional methods are not an option.
“We look forward to building on our existing relationships with the banks to create an improved journey to finance for small businesses. Using our experience of successfully integrating with banks we have focused on developing a secure and flexible technology solution so we can implement this scheme to the benefit of small businesses.
“Being part of the Government’s referral scheme provides us with the opportunity to help businesses that could grow and succeed – but who simply haven’t found the right finance for them yet.”