The Treasury Committee set in motion a new inquiry into the financing of small and medium-sized enterprises (SMEs), diving deep into the issues surrounding SME lending and finance accessibility.
The committee, composed of MPs from multiple political parties, aims to shed light on the critical challenges encountered by SMEs in procuring finance.
The investigation will venture into multiple areas, encompassing the role of innovation in business lending and the influence of the Bank of England’s Term Funding Scheme, credit reference agencies, and Government state aid in stimulating small business lending.
From Dispute Management to Regulatory Dynamics
Another crucial facet of this inquiry is the exploration of dispute resolution mechanisms for SMEs.
The committee intends to gauge the efficacy of the Business Banking Resolution Service in resolving disagreements between banks or lenders and SMEs.
It will also consider the need for regulating business lending and assess the impact of Basel 3.1 reforms on finance accessibility.
Moreover, the Financial Ombudsman Service’s (FOS) performance will be under the committee’s lens in terms of handling complaints.
Treasury Committee Chair on the Inquiry’s Importance
As per Harriett Baldwin MP, the Chair of the Treasury Committee, small businesses are vital cogs in local communities, spurring economic growth and promoting innovation.
She stressed that as “a Committee, we’ll be examining whether small businesses are able to access the finance they need to grow and develop, whether there is adequate regulation of the sector, and if Government can take a more active role to support business growth.”
Small businesses access unsecured, fast funding from Got Capital. As an alternative lender, Got Capital offers financing solutions specifically designed for and catered to the needs of SMEs.
