Funding for lending scheme
Edward Winterton, executive director at Bibby Financial Services, says: “Why does the Government continue to overlook the recommendations laid out in the recent Breedon Report which called for a greater focus on alternative funding options and a lesser reliance on bank funding.
“Their insistence to channel funding streams through the banks in an attempt to support businesses is failing to address the core issue; what is being done to support firms which have been and are being overlooked by the banks.
“Questions must be asked as to whether an increase in the availability of low-cost funds will do anything to benefit those businesses which are classified by traditional lenders as ‘high-risk’. The Bank of England must closely monitor not only the levels of lending, but to where the money is going to ensure this scheme does not become another of the Government’s futile funding projects.
“On top of this, the Government needs to focus on building business confidence and encouraging more firms to invest in growth, be it with the support from the banks or from alternative fundingproviders. Without this rise in confidence then the finance industry will only be able to go so far in helping firms stimulate an economic recovery.”
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