A consortium of Fintech companies are offering support to the Government to speed up the distribution of SME loans during the COVID-19 outbreak.
The group is made of up 167 UK Fintech companies, with fintech entrepreneur and WorldPay founder, (a payments processing company) Nick Ogden, spearheading the campaign which is designed to help small businesses that need up to £150,000 loans to stay solvent and manage cash flow.
The consortium is calling for £5bn in government funding to kick start distribution before the end of the month.
April 2020 has proved to be a financially challenging month for UK SMEs, despite the Government’s efforts to provide loans (namely through the CBILS scheme), only 0.5% of the £330bn SME loan budget has actually been issued to businesses.
“Small and micro businesses are at the heart of our economy. Cash flow is critical and in the current system, they’re not receiving funds fast enough. We need a specific distribution channel to serve thousands of small businesses and this can only be achieved through a consensus approach,” comments Nick Ogely, CEO of WorldPay
“Via this consortium, we have built a fully regulated structure that can uniquely support the government who are trying to find a way to fix this problem,” he adds.
The group is also being backed by ClearBank (who aim to facilitate fund delivery), Charles McManus CEO of Clearbank comments, “ClearBank is uniquely positioned as a clearing bank with an absolute focus on delivering innovation to the UK payments market. Our real-time, payment systems will ensure that once a loan is approved it can be instantly delivered to any UK business. We sincerely believe that working cooperatively with the industry and government, we can support the lenders many UK SMEs require in their hour of need.”
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