July 10th, 2020.

The British Business Bank does not live up to its name and is not fit for purpose, argues Greg Taylor. What SMEs need is a proper nationwide small business bank...

The UK banking system is currently failing small businesses.

In theory we do have a solution, the British Business Bank (BBB), but it’s not fit for purpose and isn’t even a real bank – just a platform for connecting lenders to SMEs. As we look to reboot the UK economy, the government needs to take radical action to ensure small businesses aren’t denied funding by a banking system which doesn’t work for them.

At present SMEs looking for funding face a perfect storm. Blanket credit policies from the banks, the fact that some SMEs are overleveraged due to the CBILS borrowing they needed to survive the pandemic, issues with liquidity within many alternative peer-to-peer lenders, and the banks’ current lack of lending appetite, have all combined to make present circumstances very tough for SMEs. They need help urgently, and the best solution would be to establish a new government-backed bank to rival the main high street and investment banks and to replace the British Business Bank.

For the full story at smallbusiness.co.uk CLICK HERE.

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