Small businesses turn to alternative forms of finance as Government’s Business Finance Partnership fails to live up to expectations
London (PRWEB UK) 24 July 2013 -- The Business Finance Partnership (BFP) was launched in September 2011 as a public and private joint investment fund aiming to provide around £1.1 billion to small and medium-sized companies.
However it seems the UK’s small businesses are not getting the support promised as the Treasury’s Annual Report and Accounts for last year indicate considerably less than planned had been distributed.
According to the Treasury’s report only £5m in capital had been distributed under the BFP – a far cry from the far larger sums promised. According to the Treasury the reason for the shortfall is that the BFP scheme has only just become fully active, following an extensive, two-year, preparation period.
However as small businesses continue to struggle to get their hands on crucial finance from banks, alternative forms of finance, which hold their own advantages, are coming to the rescue.
One such example is small business finance company MCE, which offers the product Business Cash Advance. It recently celebrated providing more than £50 Million to UK SMEs - showing that there are viable finance options available to small businesses.
According to the Treasury the reason for the shortfall is that BFP scheme has only just become fully active, following an extensive preparation period.
Paul Mildenstein, Managing Director of MCE, said: “In the current climate it is proving exceptionally difficult for SMEs to get the money they need to develop their businesses from traditional sources.
“With banks and other projects, like the BFP, failing to provide what’s needed we’d like small business owners to consider a Business Cash Advance.
“We were the first in the UK to offer businesses a ‘cash advance’ that provides a refreshingly simple way for companies to repay as they earn. The money is paid back as a percentage of card sales so they only pay back once they have the takings to do so. No other borrowing instrument or loan product is as flexible.”
To find out more about Business Cash Advances click here.
Deborah Mudway, Merchant Cash Express, http://www.businesscashadvance.co.uk/, +44 (0) 208 487 2970, [email protected]
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