Banks could be forced to direct rejected loan applicants to alternative finance providers, the government has announced in the Budget.
Under new legislation banks could be legally obliged to help match small firms that are turned down with alternative lenders.
The government will shortly launch a consultation on mandatory referrals in an effort to increase sources of finance for small businesses and spur on the alternative marketplace.
James Meekings, co-founder of Funding Circle, told our sister title...
About Robert Lovell
Business and finance journalist