The British Business Bank – heard of it? With £3.9bn of government resources committed and with the aim of attracting private capital to create £10bn of lending to the private business sector in the UK perhaps you should have done! But with no direct distribution mechanism, no branches on the high street and no high profile advertising its operating under the radar.
So how will you, as a UK based SME, feel the difference? Well, the plan is for the British Business Bank to push funding into newer, smaller providers of finance who themselves are more likely to be focussed on the private company sector and these can range from Peer to Peer lenders, Business Angel networks, to specialist invoice finance companies and more. This means more choice, with more capacity to lend so the money should start to filter through. Sounds good and it’s to be applauded but it will be very interesting to look back in a year’s time to see the true extent of the impact.