SME credit scheme kicks off


SME credit scheme kicks off

Simon Quicke

The latest government backed scheme intended to get credit flowing to small businesses has kicked off with the Funding for Lending scheme being underwritten by the Bank of England.

The scheme is intended to offer banks cheaper lending rates on the condition they pass those on to businesses as well as homeowners looking for help with mortgages.

There have already been several attempts by the government to spur bank lending to small businesses, with Project Merlin the most high profile, but so far little has changed for those looking to get funding to support growth ambitions.

Recent surveys from small business groups have gone as far as to indicate that a portion of the SME market has given up on attempting to get credit from  high street banks.

The reaction to the latest moves was to focus on the communication that would be issued to small firms, with a warning that a scheme that was not directed properly at businesses would struggle to achieve the desired results.

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