Small firms to gain from £1bn fund?

Small firms in the UK could benefit from a proposal for a £1.5 billion fund.

The small business taskforce created this summer by six of the biggest high street lenders has recommended setting up the "business growth fund", the BBC has reported.

According to the news provider, the funds would be invested into businesses over an undisclosed period.

In addition to the fund, the report will also look at ways to improve relationships between lenders and small firms.

Businesses could also benefit from feedback about credit restrictions and loan refusals, under recommendations to improve transparency.

Last month, a row blew up between small firms and high street lenders after the six big banks commissioned a subsidiary of credit profilers Experian to perform credit checking on firms that had been turned down.

The banks said they were aiming to show that businesses that had been refused credit were not able to pay back loans, justifying lenders' decisions.

Posted by Christopher Evans

Published on: October 13, 2010

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