Business loan platform Funding Xchange has been awarded £5mn from the Banking Competition Remedies fund.
In Brief:
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Funding Xchange uses technology to help SMEs find and compare funding options and get quick decisions on loans.
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The funding was applied for along with Shawbrook Bank, the National Association of Commercial Finance Brokers and Enterprise Nation.
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SME and broker finance hubs will be developed which aim to provide 1.1mn businesses and 2,000 brokers with fast access to funding by the end of 2022.
What does this mean?
All organisations involved in the project share the aim to make SME finance more accessible, affordable and sustainable.
In addition, Enterprise Nation will help provide businesses with e-learning tools and access to advisors and NACFB will make a SmartFinance Hub available for free to smaller brokerages until 2022. All this should ensure that not only can SMEs get funding at reasonable rates and choose the best loans to suit them, but they will also be educated on how the manage their finances and grow their business.
