It follows a campaign by Growth Street – a provider of finance to small businesses – which states that unlike in consumer lending, there is no requirement to advertise an annual percentage rate (APR) to enable businesses to compare deals.
As the Chief Executive of Growth Street explained, commercial finance offered to limited companies was outside the scope of the Financial Conduct Authority (FCA) and so goes unregulated.
David Macdonald, managing partner at the Worthing-based Martlet Partnership, said: “Clearly more needs to be done to help small companies because these are the businesses of tomorrow.
“Obtaining finance is crucial for SMEs if they are to grow and improve the UK’s productivity and contribute to the economic recovery, so I would like to see more information made available for firms wishing to grow and create jobs. If SMEs are misled, it could have an effect on their profitability, growth prospects, and employment.
“At The Martlet, we are passionate about helping small businesses and would be delighted to discuss the services we can offer to corporate clients.”
If your SME requires advice about obtaining finance, please contact us.