Online lending platform LendInvest announced on Thursday it is putting the UK government “on notice” to improve access to finance for property SMEs by forging better partnerships with the alternative finance industry.
LendInvest reported that in a new report entitled Putting Finance First: the alternative route to funding Britain’s SME housebuilders, the online lender recognizes that while the government is trying to help improve the outlook for property SMEs, but then argues that not enough is being done to put rhetoric into action. The report focuses on three proposed initiatives that combine existing government-backed funding mechanisms with the experience and expertise of alternative lenders, like LendInvest, to speed up and increase the supply of finance to property SME businesses:
- Homes England: Should deploy its £2.5 billion Home Building Fund through funding lines agreed with alternative lenders.
- Local authorities: Should co-invest with alternative lenders in local developments, utilizing the Public Works Loan Board mechanism to provide discounted capital for SMEs.
- The British Business Bank: Should appoint more alternative lenders to use the ENABLE Guarantee programme to underwrite property investment and development loans.
Christian Faes, Co-Founder & CEO of LendInvest, stated:
“Every week we could lend more to SME housebuilders that are struggling to obtain finance, if the government worked with us to help fund those developers. The government is clearly trying to get more homes built across the UK. However the government needs to work with alternative lenders, like LendInvest, to help get critical funding to SME housebuilders. Our proposals offer common sense solutions to a major market crisis, using tools that government already has at its disposal.”
Brian Berry, CEO of the Federation of Master Builders and fellow foreword contributor, added:
“I fully concur with the strong case put forward by this report for improving access to finance for small developers. Above all, I warmly welcome the contribution that this report makes to an important conversation around the different ways in which government (both central and local) can work with private sector lenders and developers to build a healthier housebuilding industry in this country.”