Finance · 5 January 2017

New small business loans provider looks to plug gap created by bank rejection

Newable helps to boost confidence amongst entrepreneurs and small business owners
Newable helps to boost confidence amongst entrepreneurs and small business owners

Business confidence consultancy Newable has been chosen as the national delivery partner for the government-backed Start Up Loans Company.

The partnership will see Newable, an organisation which seeks to boost confidence amongst entrepreneurs and small business owners, help around 5,000 individuals across the country move away from state benefits and start their own venture.

Through the Department of Work and Pensions’ New Enterprise Allowance (NEA) scheme, Newable will provide small business loans help to aspiring business owners who may have previously been turned down for a loan by a mainstream bank.

The NEA scheme allows eligible individuals to apply for small business loans of up to £2,500 to assist with the costs involved in a startup. The Newable and Start Up Loans partnership will therefore work with applicants to ensure business propositions are “finance-ready”.

Newable, which in the last year has supported 2,000 small UK businesses with growth funding to the tune of £9m worth of small business loans, will also mentor NEA applicants on self-employment and asses their business plans and forecasts.

Newable CEO Chris Manson is optimistic the partnership will result in a higher number of successful applications to the Start Up Loans Company. The consultancy has been delivering the NEA loan scheme for the Department of Work and Pensions’ and The Startup Loans Company at the local level since 2012.

“This assignment is a ringing endorsement of the great team we have working on this project and we’re now looking forward to working with The Start Up Loans Company on a national scale,” Manson added.

“Newable’s purpose is to help people startup, sustain and scale their businesses, and the relationship with the Start Up Loans Company is a vital part of this.”

The Startup Loans Company is backed by the British Business Bank (BBB), and has supported thousands of small UK businesses since it was launched by former business secretary Vince Cable in 2014, reaching the landmark of £250m in lending in August last year.

Tim Sawyer, The Start Up Loans Company’s CEO, has emphasised the value of the initiative since its launch. Last year he claimed that for every pound The Start Up Loans Company invested, the UK economy had seen a return of £3, with an additional 45,000 jobs having been created.

Commenting on the new Start Up Loans partnership, the company’s commercial head, Joanna Hill, said: “We were extremely impressed by the quality of Newable’s tender, as well as its track record and commercial proposition. We look forward to helping to support even more new startups with small business loans.”

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ABOUT THE EXPERT

Fred Heritage is deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London. He previously worked as a reporter at Global Trade Review magazine.

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