Banks to refer businesses to alternative lenders - How can regulated banks refer business to their unregulated factoring subsidiary's? Total maddness

ADMIN: THIS IS MADDNESS FORCING COMPANIES TO USE UNREGULATED ASSET BASED FINANCE - WHERE THE PROFIT IS IN PUTTING CLIENTS INTO INSOLVENCY AND GORGING ON THE ASSETS AT THE EXPENSE OF HMRC

George Osborne has confirmed that banks which reject funding applications from SMEs will be forced to then refer them to alternative lenders.

The controversial plans are hoped to give more businesses access to the funding they require and ensure that their search process doesn’t start and end with the bank. It will also raise the profile of the so-called ‘alternative finance market’ even further amongst businesses, which continues to grow.

Under his proposals, which follow a consultation period, high street banks will be referring businesses to crowdfunders, peer-to-peer lenders and asset based finance companies, where appropriate.

Business secretary Vince Cable explained: “Forcing banks to refer businesses to alternative lenders is something I’ve been determined to make happen. It’s good that more SMEs are making use of alternative finance but the big banks still dominate and small businesses often give up if they’re turned down for finance by their bank.”