The APPG on Fair Business Banking is calling for written evidence to be submitted to inform its inquiry into financing and capitalising the UK’s SMEs. The inquiry is looking into how more diverse funding models can deliver more choice and better outcomes for SMEs in the UK.
The SME lending market in the UK is currently dominated by large, shareholder driven banks. However, a more diverse funding model has been proven to be more effective at weathering economic shocks – take Germany as an example of a country with a diverse offer of financing options for business lending that has proved resilient both post GFC and throughout the Covid-19 pandemic. This project will explore the benefits of more diversity both in what products are offered to business but also the structure of financial institutions, regional support, and how to achieve greater diversity and how this can deliver on the Government’s levelling up agenda.
Consultation details:
ACS' submission:
