Funding For Lending Scheme To Promote Lending To Small Businesses

The UK government launched its new Funding for Lending Scheme in August 2012 to encourage banks to lend money to small businesses. The £80 billion scheme effectively allows banks to have access to cheap finance from the Bank of England provided that the funds can be earmarked for lending to small businesses. The aim of the scheme is not only to promote increased lending to SME’s but also to enable the banks to offer more competitive loans to borrowers. 

We would advise entrepreneurs, contractors and small business owners who are looking to raise finance to discuss the Funding For Lending Scheme with their bank. If you are looking to raise finance then this may be the right time to apply for a loan as the banks can only access the cheap finance if they can pass this on in the form of loans to small businesses. 

We are currently working with our banks to determine how best to meet the needs of our clients. If your business is currently seeking finance and is interested in finding out more about the Funding For Lending Scheme please feel free to contact us and discuss this with our team.