Government’s Bank Referral Scheme proved its value this week as three small businesses secured finance within hours through the Alternative Business Funding (ABF) platform and iwoca.
One small business referred to the ABF platform received funding through Iwoca within two hours, another within three hours, and the third customer received funding just 24 hours after registering with ABF.
All three businesses had initially been turned down for funding by their banks – Barclays, RBS and HSBC before being referred to ABF through the Bank Referral Scheme. Although the funding to each business was under £10,000, an additional small business referred by their bank to the ABF platform has also just received a £120,000 business loan from iwoca.
HM Treasury reported in August 2018 that over 900 small businesses turned down for loans from the UK’s high-street banks had received over £15 million of funding thanks to the Bank Referral Scheme.
Alternative Business Funding Business Development Manager, John Evans, said: “This graphically illustrates the success of the Government’s Bank Referral Scheme as all three businesses had been turned down by their banks before being referred to ABF.
The rapid turnaround of these successful applications also highlights the ABF’s ability to identify a suitable finance provider for the client and the platform’s capability to automatically connect with a funder to speed up the process.”
iwoca Head of Affiliates, Sharif Mohamed, said: “We’re delighted that these four businesses got the funds they needed from iwoca with the help of Alternative Business Funding and the Bank Referral Scheme. UK small businesses have accessed more than £3.5 million from us via the Scheme so far and we’re responsible for half of all the loans made through it.