FSB launches new ‘game changer’ platform to tackle ongoing SME funding concerns
A new wave of funding concerns has hit small and medium-sized enterprises (SMEs) as the number of successful credit applications in the final quarter of 2023 slumped.
While some 53 per cent of applications were approved, the number is down from 62 per cent in the previous three months, according to new research from the Federation of Small Businesses (FSB).
Of those successful, a third were offered an interest rate over 11 per cent, which is nearly two per cent higher than before, the research highlighted.
It comes as small businesses continue to face funding challenges since traditional banks began tightening their lending criteria, prompting the Treasury Committee’s ongoing investigation into the funding disadvantages SMEs face.
In response to the decline in approvals, the leading industry support group has launched a new FSB Funding Platform, provided by Capitalise, to give SMEs easier access to over 100 UK lenders.
FSB chief commercial officer, Caroline Lavelle, said: “It’s clear that access to affordable finance has become harder recently, and therefore we are very pleased to have been able to partner with Capitalise to provide our members with this comprehensive solution.
“Combining powerful credit insights and risk management tools along with such a wide range of lenders will be incredibly supportive for our members in what can be a difficult funding market to navigate.”
Paul Surtees, chief executive of Capitalise, said the platform will be a “game changer” for SMEs on a hunt for finance.
Surtees said: “With our support and expert insights, as well as handing small business owners crucial data to make informed decisions and improve their financial health, this will be a game changer for those seeking finance.
“Alongside the transparent access we offer to a wide range of lending options from over 100 UK lenders, this will ensure diverse and tailored financial solutions for ambitious business owners.”