By M McDowell - Crowd Funding Editor
The changing landscape of business finance and lending in the UK continues with
small and medium sized businesses being encouraged to look beyond the main high
street banks for lending and sources of funds for growth.
As the main high street banks retreat from lending to small and medium
sized businesses the CBI have published a report encouraging a revolution in
business finance. Encouraging the
growth of the corporate bonds market, invoice or other factoring and
crowdfunding.
The crowdfunding can take the form of peer to peer lending by firms such
as Funding Circle or direct equity investment through Crowdcube or Seedrs.
The role of crowd funding is increasing and it’s growing reputation has
now been recognised not only by the CBI but also Business Secretary Vince Cable.
"Britain's
businesses cannot grow, export and innovate without proper access to bank
credit. But they also need alternatives when looking for finance," said Mr
Cable. "The government wants to see a shift in the market structure
towards non-bank lending."
The challenge
for Mr Cable to work with the UK Crowdfunding Association and the FCA to develop
a regulatory framework to give new entrants to opportunity to provide
confidence to both business and investors/ lenders.
