At ABL Business Ltd we welcome the introduction of the new “Credit Data Sharing Scheme” together with the enhanced “Bank Referral Scheme”.
The government has implemented a new credit data sharing scheme, which will make it easier for alternative finance providers to lend to small businesses.
Under the Credit Information Regulations, nine major banks will be required to share data on their small to medium sized business customers with the designated Credit Reference Agencies (CRAs), Experian, Equifax and Creditsafe. These CRAs must then share this data equally with all finance providers.
The aim is to increase competition in the small to medium sized business lending market.
It’s recently been noted by bodies such as the Competition Commission, that there’s a lack of information about the creditworthiness of small to medium sized businesses; a barrier to competition in the lending market.
The new regulations mean alternative lenders will be able to compete against the larger ones in lending to the small business market.
At ABL Business, we agree with Harriett Baldwin, Economic Secretary to the Treasury, she said: “The best way to deliver this is to increase competition in the banking sector and remove the barriers to new sources of finance for small to medium sized businesses. Requiring banks to share data is a major structural reform that will level the playing field between banks and alternative finance providers.”
In Budget 2016, the government further boosted lending to small businesses by alternative finance providers with the extension of the Bank Referral Scheme.
We have many years’ experience assisting business to raise capital. Whether your business is large or small, established or fledgling, liquid or experiencing cash flow difficulties you can benefit from the services ABL Business offers.
Using ABL you will be dealing with an individual. It’s the traditional approach where we look to develop long term relationships. Being truly independent we have a vast network of funders to ensure that we can tailor the financial package to meet your needs.