This article details the importance of SMEs and their contribution to the UK’s economy, and outlines their financial difficulty over the past year. Though the government has introduced two types of loans SMEs can take out (BBLS & CBILS), MarketFinance has predicted from their collated data and speaking to business owners, that most believe they will survive the crisis. This has caused a knock-on effect on the FinTech sector. This has caused a dramatic increase in customers seeking alternate funding options, as 250,000 businesses in the UK were ‘locked out’ of the Bounce Back Loan Scheme.
The exclusion of the FinTechs and the non-bank sector could prove problematic going forward, especially when the government-supported funding schemes are dismantled. It will then be the responsibility of the private sector and a market-based lending ecosystem to lead the transition and help rally the UK’s finances.