The latest platform the join the initiative is nascent peer-to-business lender Rebuildingsociety. Along with the addition of Rebuildingsociety, the collaboration of lenders is receiving a growing level of support from important trade bodies – including the British Banking Association, the Federation of Small Businesses and the Institute of Chartered Accountants. The ABF portal accounts for over 85% of the nation’s alternative business funding supply – and appears destined to press on towards covering the entirety of the space.
Adaman Tavener, the Chairman of pensionledfunding.com who bound the portal members together in the first instance, explained:
“Rebuildingsociety is the twelfth funder to join the ABF collaboration and the first since George Osborne's announcement that the planned legislation around bank referrals is going ahead. We have a further 27 funders waiting to join and will be getting them on board as soon as is practically possible.”
The above-mentioned referrals confirmation is of crucial import to the ABF portal – which has long sought to establish itself as the landing spot for banks to refer rejected businesses to. Banks will be cautious about referring to a specific platform because that action could constitute financial advice, and give rise to legal implications. Referring credit-hungry SMEs to a portal is different – because the business is merely being signposted in the general direction of alternative finance, and left to pick a particular platform for itself.
Daniel Rajkumar, Managing Director at Rebuildingsociety, commented:
“Joining Alternative Business Funding reinforces our commitment to help businesses grow and demonstrates that we have the backing of our crowd of investors to provide loans to those UK businesses who want the opportunity to succeed – an opportunity which is sometimes denied to them elsewhere.”