New £2.5 billion Growth Fund (BFG) Launched by Vince Cable
Bank aid for businesses with turnover of £2-100 million turnover per year. Small business owners believe this will be of little help to access funding for day to day business which is lacking in the UK. More small businesses are turning to invoice finance which is readily available and flexible in the approach to small business lending to prime sub prime and near prime businesses.
The Business Growth Fund has been established to help Britain’s smaller and medium sized businesses with an annual turnover of around £10m to £100m. It will invest approximately £2m and £10m per business in return for a minimum 10 per cent equity st ake and a seat on the board for a BGF director. The Fund will provide long-term equity investment for those growing companies which today do not have access to this source of capital. It is an independent fund of up to £2.5 billion, backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS, and Standard Chartered – and working in collaboration with the British Bankers’ Association. Launched by Business Secretary Dr Vince Cable, in Birmingham to mark the launch of the BGG. The press have received this move in a lukewarm fashion because it does not meet the needs of the majority of small businesses.
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