Paul Aitken, CEO and founder of borro, said: “The Chancellor’s promise today to look at whether the Funding for Lending scheme can be extended is just not enough. Businesses have waited and waited for more decisive action and it looks like they’ll be waiting even longer. Hot air from the Chancellor does not put pounds into the bank accounts of the nation’s small businesses.
“While we of course welcome the Government’s numerous promises to breathe life into the UKs business sector and support the nation’s entrepreneurs, we need to see it walk the walk– and not just talk the talk. There have already been moves made to stimulate business growth, through various initiatives over the past year, including the Funding for Lending initiative of course, but this is yet to have a truly positive effect. As a result, millions of small businesses still have no confidence in the banks and have turned to non-bank financing.
“We need to see confidence boosted, which in turn will lead to business owners seizing opportunities, resulting in the stimulation of growth. Our online personal asset-lending model has thrived since borro was set up five years ago. We have seen a huge increase in the number of small business owners unlocking finance from valuable and unusual personal assets in order to capitalise on business opportunities; the average loan value to SMEs, who currently represent over 60% of our client base, rose 41 per cent last year, from £17,000 to £24,000.”