A government-appointed committee has stated that if access to finance for businesses isn’t improved, there could be a funding gap of up to £190bn within the next five years.
Tim Breedon, Legal & General Boss, leads the group and said of the predicted shortfall, "There is compelling evidence that access to finance is expected to become more acute as business confidence and growth returns, whilst continuing bank deleveraging is likely to leave a significant funding shortfall."
The group is requesting a single agency to run all government-led small business support. It also calls for the establishment of a Business Finance advice network, to be made up of big accountancy firms.
"We need to reshape the UK's finance landscape to better serve the needs of ordinary businesses, helping more companies find the support they need to start and grow," said Business Secretary Vince Cable.
The government has also stated its desire to encourage businesses to look for funding from other sources.
Alternative funding solutions
Invoice finance is one such alternative, which can provide businesses with increased cashflow without any limits.
As these facilities work on the amount of invoices issued, there is no cap on the amount of cash a business can access. So the more invoices issued, the more cash that becomes available!
The amount of cash funded through Invoice Finance solutions such as Invoice Factoring and Invoice Discounting rose by over 30% between 2006 and 2016....