The newly announced budget marks a big win for world’s small businesses with new tax reforms and support with business funding.
The business rate relief means that as of April 2017, 600,000 small firms will not have to pay business rates, and rates will be reduced for 250,000.
The government is also improving access to finance through the Help to Grow Programme which will support a least 200 million of lending and also through the Referral scheme that will enable the 100K SMEs that were rejected by the high-street banks, to get matched with non-bank lenders through designated finance platforms: Businessfinancecompared, Funding Options and Funding Xchange, and see if they qualify for alternative finance.
This is a great start for the UK SMEs that are constantly facing financing challenges. In the UK there are over 5 million SMEs and almost all will need funding at some point of their life cycle. In recent years there are a growing number of financial solutions available for them, however awareness is still one of the main problems, 70% of SMEs will go to only one provider and if declined will remain without funding.
At Finimpact we are dedicated to making the new world of finance accessible and are committed to making every business fundable.