The website, which aims to help SMEs find alternative business funding, said over 100,000 small businesses could be fast-tracked to alternative business funders as a result of the legislation.This prediction comes alongside an announcement that ABF has 12 new funders joining the portal, reaching a current total of 32. ABF has funded 2,500 businesses through its service, with a ratio of one in three companies receiving funding. Adam Tavener, chairman of pensionledfunding.com, who led the ABF collaboration, suggested that enforcing the act should be a matter of priority for whichever party ends up in government following May’s general election. “It is vitally important that the party or coalition government elected 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,” he added Looking into the Parliamentary Impact Assessment and The UK Alternative Finance Industry Report 2014, as well as the rules put forward by the Basel Committee on Banking Supervision, ABF has summarised that the initial 100,000 small business funding referrals directed to the alternative funding sector could go on to increase significantly in the future. Basel has insisted that a 300 per cent risk-weight be applied to small business, which could result in trebling the amount of capital that banks must put against a loan. Read more on alternative finance:
- Is low awareness of alternative finance hurting SMEs?
- While smaller than the industry in the UK, alternative finance in Europe cannot be ignored
- A look at the contents of the Small Business, Enterprise and Employment Bill
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