£32 million boost for British businesses through referral scheme

Friday August 30th, 2019

More British businesses up and down the country are getting the financing they need to grow and expand, new figures show today.Government Opportunities

  • securing credit to grow is often a barrier for small and medium sized businesses
  • the Bank Referral Scheme has helped nearly 800 businesses to access the investment they need to grow in the last 12 months
  • funding through the scheme has increased by over a third in the last year to nearly £17 million

Since its creation in 2016, the Bank Referral Scheme (BRS) has helped hundreds of small and medium-sized businesses to access finance after they were turned down by their bank. Over the past 12 months, 796 businesses have raised nearly £17 million of funding through the Bank Referral Scheme, a significant increase on the previous year. Since it was introduced, £32 million has been sourced for businesses all over the UK.

The scheme was launched in November 2016 in response to evidence which suggested that after being turned down for a loan by their bank, small and medium-sized businesses rarely sought other options for financing.

It requires nine of Britain’s biggest banks to pass on the details of businesses they have turned down for loans to online credit brokers. These platforms are, in turn, required to share their details, in anonymous form, with alternative finance providers, helping to facilitate a conversation between the business and any provider who expresses an interest in supplying finance to them.

The Economic Secretary to the Treasury, John Glen, said:

“It’s great to see this scheme go from strength to strength, with nearly 1,700 British businesses up and down the country accessing the funding they need.

It’s not right that so many small and medium-sized businesses simply had to give up when they were turned down by their bank for a loan.

I now want to see more of our trailblazers and entrepreneurs use this scheme to get the backing they need to grow and help boost our economy.”

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