smallbusiness.co.uk: Helping your business think big

The government is calling for alternative finance options for SMEs unable to access bank funding.

In a paper launched by the Treasury, businesses are being asked to give their views on how to increase finance options, with the intention to introduce proposals for reform later in the year.

Paul Myners, financial services secretary to the Treasury, says: ‘Large corporations have had a great deal of success in accessing finance directly from credit markets with a surge in corporate bond issuances. Smaller firms, however, have not been able to similarly replace bank lending by directly tapping financial markets or non-bank financing.’

Steve Hughes, economist at the British Chambers of Commerce, says many businesses have struggled over the last 18 months to obtain finance through the banks.

‘The current fragility has brought to prominence alternative methods of accessing finance. It is up to the government to make sure funds that are available can be readily accessed by the business community,’ he adds.

To have your say visit the Treasury’s website.