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London, Greater London, United Kingdom, 2012/09/12 - We welcome the Business Secretary’s commitment to easing constraints on UK businesses through the promotion of new funding options - NGFC.org.uk.
The positive attitude towards innovative private sector initiatives shown by both the Government and the Labour Party can only be a good thing for UK SMEs.
Subsidising bank loans might provide temporary relief for banks struggling to hit their SME lending targets, but we must continue to move towards a future in which UK businesses are not over-reliant on a handful of financial institutions. The banks will always play an important role in the life of SMEs in this country, but it is important to allow alternative finance institutions like the members of the Next Generation Finance Consortium (NGFC) to share the responsibility. The role of the Business Bank should be to provide support to both banks and alternative finance institutions, and also to educate business-owners about the financial options they have.
A number of innovative new alternative finance institutions have sprung up in the wake of the banking collapse, helping UK businesses to find funding while the banks struggle with their balance-sheets. New solutions now exist for every stage of the life-cycle of a business, from equity finance through to long-term loans, credit unions, and working capital finance. A truly diverse lending landscape is within sight, and public sector initiatives must ensure that they embrace it as a goal.
About the NGFC
The NGFC (ngfc.org.uk) represents a union of these alternative finance institutions, including crowd-funders like Crowdcube, peer-to-peer lenders like Funding Circle and the online invoice finance company MarketInvoice. The initiative was founded to promote awareness of alternative finance, and is led by Anil Stocker of MarketInvoice.
For additional comment please contact Anil Stocker on +44(0)20 7078 7621 or email a.stocker[.]marketinvoice.com.
Issued by Public Relations consultants Kelso Consulting on behalf of the NGFC.