Broker welcomes Business Bank cash injection

Midlands Asset Finance said the review of the Small Business Research Initiative announced by Prime Minister Theresa May earlier this week should help to identify ways in which to ease the problems faced by SMEs looking to access finance to fund their growth and innovation.
 
This was further boosted by Chancellor Philip Hammond’s announcement during the Autumn Statement that he plans to inject £400m into venture capital funds through the British Business Bank to unlock £1bn in finance for growing firms.
 
But the firm said that to ensure these measures are a success, ongoing action to encourage banks and other lenders to lend to viable growing businesses is essential. 
 
Its call came on the back of the publication of recent figures by the Finance and Leasing Association, which showed that asset finance new business recorded its 36th consecutive month of growth in September, after increasing by 12% compared with the same month last year.
 
In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.
 
Midlands Asset Finance director Dave Chapman said:

“Anything which can be done to make it easier for small but growing businesses to access the finance they need to invest and grow has to be a good thing.
 
“The most recent FLA figures show that there are plenty of aspirational SMEs out there experiencing growth and they are turning to asset finance rather than more traditional banking facilities to fund their investments in new technology, equipment and machinery, or to release cash against existing assets to fund their growth plans.
 
“The Chancellor had a golden opportunity today to look at the success of the asset finance market over the past three years and implement measures which make it easier for businesses to identify and source funding opportunities, and also to encourage lenders to release the cash to businesses which have a clear and robust proposition that will result in their growth.”