The web portal is the brainchild of Adam Tavener, chairman of pensionledfunding.com, and according to him is “complementary” to bank finance. He added: “We see this portal as a genuinely disruptive influence, as it will shake up the SME finance sector and drive the current inefficiencies from the system.”
The businesses behind the portal hope that banks that are reluctant to lend will redirect businesses in their direction.
James Meekings, co-founder of Funding Circle, said: “All of the funders involved in the portal are determined to significantly enhance the availability, clarity and quality of alternative funding solutions to both SME’s and major Banks wanting to refer unsuccessful applicants. This forms part of our wider commitment to providing fair, fast and transparent access to finance to as many small businesses as possible.”
How would it work? To get started businesses that want alternative means of funding would have to answer a few simple questions about their requirements and will then be signposted to only those funding options that meet their requirements.
The idea has won praise from business secretary Vince Cable, who said, “A new alternative business funding portal that seven funding bodies put together will enable redirection of customers. Anything that redirects people, who are turned down by one lender, is an advance.”