Clifton Asset Management chairman’s campaign delivers funding breakthrough for small businesses
Bristol-based Clifton Asset Management is celebrating a David and Goliath-style victory which strikes a blow for small business owners up and down Britain.
A campaign by CAM chairman Adam Tavener has seen a new law passed which will change lending to small businesses forever.
“At Government level the legislation is not seen as the end game but the beginning of a new way for small businesses to access finance in the future,” said a delighted Mr Tavener.
One key element of the Small Business, Enterprise and Employment Act requires banks to refer those firms rejected for loans to online platforms which can introduce them to alternative funding providers.
Many find the traditional funding route blocked after being turned away by the banks, with first-time SME borrowers facing a 50 per cent rejection rate.
“Now we are forcing banks to refer any unsuccessful business to non-bank funders,” said Mr Tavener, the man behind the alternativebusinessfunding.co.uk (ABF) portal.
“One small business in Bristol was behind a scheme which has implications for the national economy.
“This one idea will have a hugely-positive impact on the small businesses sector which provides around 50 per cent of all private sector employment in the UK.”
The Bill, given Royal Assent on Thursday, has far-reaching implications for the more than five million businesses in the UK, with the Department for Business Innovation & Skills (BIS) pledging new opportunities for small firms to “innovate, grow and create jobs”.
Mr Tavener kicked off the campaign by writing a paper for the Prime Minister David Cameron’s Special Adviser.
Now 10 of the country’s largest banks will be required to pass on the details of small business owners looking for the funding they need to grow with the Law “levelling the playing field between providers”.
Clifton Asset Management, which employs 100 people at its Ham Green offices, has had a hugely successful month after being named as one of the UK’s top disruptive SMEs in The Everline Future 50 Awards and finalists in the Credit Today Awards in the Best Alternative Funding Provider category.
The finance company was highly commended for Innovation in the SME Finance Sector at the Business Moneyfacts Awards in London.
Clifton and its pensionledfunding.com product has already helped more than 2,000 businesses secure around £200 million of funding.