UK-based challenger bank TSB announced this week it is preparing to launch a new lending marketplace with a mission help small businesses across the UK get the funding their need to continue growth. The bank is partnering with Funding Options to launch the marketplace this upcoming May. It was revealed:
“While small businesses can apply for a loan with TSB they will also be free to shop around and compare options from a wide range of other lenders through Business Marketplace – a solution that no other high street bank in the UK offers side-by-side with their own loans.”
TSB also reported that a multi-million-pound investment programme is also underway to build new banking services for small businesses across the UK, which is led by TSB’s new Commercial Banking Director, Richard Davies. Davies stated:
“When I speak to small business owners across the UK, I am acutely aware that running a small business leaves little time and energy to find the right business lender and navigate complex business lending procedures. We want to help small businesses to focus on what they love doing the most, which is running their business. That’s why we’re partnering with Funding Options to launch a straightforward and competitive lending marketplace that helps small businesses to borrow well – with access to a host of lending options that they can compare side-by-side to find the loan that best suits them.
“There is a huge funding gap for small businesses that exists in the UK today and it is stunting the growth of these firms and stopping them from investing to grow. Bringing more competition to UK banking is in our DNA, and Business Marketplace will allow a small business owner to easily compare what’s available in the market. We believe customers must be given choice, and that competition will drive us to create the best solutions for customers. This will help unlock the true potential of small businesses and address the stagnation of productivity in the UK.
“We want to create something better for small businesses in the UK and this is just another example of how we are leading the charge. As well as launching Business Marketplace, we’ll soon be introducing a new digital lending platform, offering millions of pounds of lending to small businesses. The platform will allow small businesses to apply and receive instant credit checks and approvals online – reducing time and paperwork. It will be one of a number of FinTech partnerships that we invest in to bring new services and experiences to small businesses – watch this space!”
Conrad Ford, Chief Executive of Funding Options, then added:
“The future for banks is to offer not just their own products to customers, but also the best the market has to offer. This is especially true in SME finance, where not every small business is right for bank lending, yet a thriving market of alternative lenders stands ready to deliver much-needed funding. Business banking is a sector ripe for fresh thinking, so we’re delighted to be working with TSB on its forward-thinking approach to bring new choice and competition, and my team has been deeply impressed with the speed and energy of everyone at TSB.”