NACFB welcomes Business Growth Fund
The NACFB has broadly welcomed the proposals from the Business Finance Taskforce set out in its recent report, but says more needs to be done to help the smaller business.
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“The NACFB took part in the Taskforce’s discussions and proposals in this report are certainly a step in the right direction. It is good to hear some positive developments.
"However, one of the key recommendations was the setting up of a Business Growth Fund, an entirely new institution, which aims to make equity investments of between £2m and £10m in businesses with a turnover of between £10m and £100m.
"Obviously these businesses are at the larger end of the SME scale and this leaves the much greater portion of businesses, which are significantly smaller than this, without access to any additional finance support.
“The smaller business can still benefit from the other recommendations: a network of mentors for support and improved communication from the banks and this additional support should be welcomed. Unfortunately, however, the key issue of funding for this sector remains unaddressed.”
The three key recommendations for banks in the report are to:
- Improve customer relationships;
- Ensure better access to finance;
- Provide better information and promote understanding.
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