In a move that Business Secretary Vince Cable deems “an important boost for non-traditional lenders,” government will release £30m to support the growth of UK small and medium sized companies.
This figure is expected to rise to over £70m as more money is attracted from the private sector.
The three lenders are Market Invoice, URICA and Beechbrook Capital.
Mr Cable commented: “A lack of access to finance is still choking off too many small businesses, preventing them from growing, taking on new staff or investing in new equipment.”
The government previously committed, through the Business Finance Partnership, to provide £100m of funding in a bid to offer a more diverse pool of financing opportunities for SMEs (at the moment 85% of loans to businesses come from the big four banks).
The £30m that Market Invoice, URICA and Beechbrok Capital will receive come from a trance of the Partnership.
Photo courtesy of Images of Money
