The National Association of Commercial Finance Brokers (NACFB) has commented on the Autumn Statement’s financial impact on SMEs.
Marcus Grimshaw, NACFB chairman, said: “The lack of further measures to tackle business lending and encourage investment was a missed opportunity. The refocused Funding for Lending Scheme should marshal high street lenders in greater numbers to get behind small businesses. But it is disappointing that the rumoured inclusion of peer-to-peer lending products in Isa allowances did not feature among the Chancellor’s pledges.
“Not only would this benefit savers, but it would also build on the runaway success of peer to peer lending in answering the prayers of businesses whose existing access to funding is limited. Peer-to-peer lending has risen at a rapid rate during a wider funding drought: the value of peer-to-peer loans to small businesses rose by 80% last year alone. Greater awareness of alternative sources such as this will be essential to kickstart commercial lending during 2014.”
Adam Tyler, CEO of the NACFB, added: “Extending business rate relief and capping inflation on commercial premises will help hold back the rising tide of business costs. The antiquated system used to work out business rates based on the Retail Price Index desperately needs an overhaul, as the costs have spiralled high enough to threaten the survival of many fledgling SMEs. Extending the relief will buy the time to do this.
“Cutting business tax bills will also give British entrepreneurs much needed breathing space and free up further cash for investment. Prioritising smaller businesses is a wise move: they are fundamental to creating jobs, increasing output and lifting the wider economy to greater heights.”
