Revenue mulls small business credit database
HMRC's latest attempt to boost the SME sector will see it working with government departments to develop a small business credit database to help firms secure finance.
The Telegraph reports the “pilot scheme” run by HMRC could see companies’ VAT payments data being shared with credit ratings agencies, providing more reliable information to banks and other lenders.
The problem of viable small businesses being unable to secure credit has been dubbed “computer says no” banking.
If the proposals move forward, more information on small firms’ credit histories will be made available to lenders, especially newer banks, to help increase access to finance.
However, according to an HMRC spokesperson...