Overcast

Overcast

max temp: 9°C

min temp: 5°C

ESTD 1874 Search

UK: Business Secretary Vince Cable announces funding for ‘peer-to-peer’ lending

16:50 12 December 2012

Secretary of State for Business Vince Cable

Secretary of State for Business Vince Cable

Archant

ALTERNATIVE lending for small businesses that uses the web to match borrowers and lenders received a £110million boost from the Government and private sector today.

shares

Business Secretary Vince Cable pledged £55million to small business finance through peer-to-peer lenders, splitting the cash between providers Funding Circle, Zopa, Boost and Credit Asset Management.

Match-funding from the private sector is expected to lever in a minimum of £55million, making at least £110 million available to lend to small businesses through the web-based lenders.

Mr Cable said: “These new forms of finance are still small in scale today but they should, over time, bring additional choice and greater competition to the lending market.”

Funding Circle will receive £20million, Zopa will receive £10million, Boost will receive £20million to set up a fund that will make loans between £1million and £8million, and Credit Asset Management will receive £5million.

The Government funding comes from the £100million Business Finance Partnership fund. The allocation of the remaining £45million will be announced next year.

Mr Cable, who was speaking at the Association of British Insurers’ Investment Conference, also announced that a network of 1,000 Business Finance Advisers is to be launched.

Samir Desai, chief executive and co-founder of Funding Circle, said: “Not only is this a huge vote of confidence for peer-to-peer lending, it’s a defining moment for the future of small business finance.

“For too long, British firms have been held back by a banking monopoly, with businesses across the UK struggling to get the finance they need. Today is an important milestone in redrawing the financial landscape to give them a brighter future.”

shares

0 comments

Strawberry Stores in Sudbury was hit by an armed robber

An 18-year-old man was arrested in Sudbury following an armed robbery at a convenience store in the town this afternoon.

The land on Church Lane, Claydon.

Proposals for a travellers’ site to the edge of a Suffolk village have been refused by the planning authority.

Essex Police escort a delegation from the Saudi embassy during a visit to Salary Brook in Greenstead, Colchester, to see the scene where Nahid Almanea was killed last June.

Detectives investigating the murder of Nahid Almanea met with officials from the Kingdom Saudi Arabia (KSA) in Colchester today.

Shirley Ison may have made a fatal error which caused her car to collide with a tree

Driver error is believed to be the cause of a road accident in which a woman was killed, it was ruled this week.

Easter fun at Kesgrave Library. Tabitha and Sebastion Degiorgio.

Eggs – chocolate and real ones – were on everyone’s minds as a library held a family event to mark the Easter season.

Extra trains for ITFC Fans

Extra train services have been arranged for Ipswich Town fans on Good Friday.

Hagon pleaded guilty to a charge of causing serious injury by dangerous driving and was sentenced at Chelmsford Crown Court on Tuesday, March 31 to two years and eight months imprisonment and disqualified from driving for five years, after which he must take an extended test, Essex Police said.

A driver has been jailed for two years and eight months following a serious collision in High Garrett, near Braintree.

Planners have refused homes on vacant land at Felixstowe's Haven Exchange site.

Proposals for 61 homes near the Port of Felixstowe have been refused because of the need to keep as much employment land available as possible.

Chelmsford Crown Court

A woman has been left permanently disabled after a driver who had taken a cocktail of drink and drugs smashed into her car.

Ian (L to R) and Debbi Tayler along with Tim Cocker standing with the rubbish they have collected from alongside the A12 in Stratford St Andrew

Littering motorists have been criticised for their “thoughtless” behaviour after a dozen large bin bags of rubbish – including a pair of pants – were collected from the roadside.

Most read

Most commented

Topic pages