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Business lending 'needs a revolution'

Date Added: 03/07/2012  

A new online commercial lender has stated there is a need for a revolution in business lending in order to allow small to medium-sized enterprises to grow and boost the economy as a result.

According to Funding Circle, which claims to offer an alternative option to firms unable to secure loans through traditional means, innovation is being driven in this area.

It was noted by head of sales at the company Laura McMullen that there is a clear demand among small to medium-sized firms across the country for a new type of business lending.

"By bringing together businesses seeking finance, through professional advisers, with investors looking for attractive returns, Funding Circle is driving innovation in the industry. With a business process guaranteed to deliver funding quickly, with the minimum of administrative wrangling, loan applications have soared," she said.

The specialist highlighted the fact that the business lending sector in the UK has been stagnant for a long time and it needs to be shaken up.

She described the application process of going for a loan from a traditional lender as "snail-paced", noting firms get a much faster response when they apply for finance through Funding Circle, which may encourage entrepreneurs to investigate their options.

It was noted by Ms McMullen that Funding Circle also offers "vital liquidity" for small businesses all over the UK, which may help it to grow in the coming months and years.

She claimed "real solutions" to problems with business lending are being provided by the specialists at Funding Circle.

Speaking at the launch of the Bank of England's twice-yearly Financial Stability Report just a few days ago, Mervyn King stated there is a need for improvements in the business lending market in the UK if the economy - which slipped back into recession earlier this year - is to receive a boost.

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Posted by Michael Beam

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