Xavier Rolet, Chief Executive of the London Stock exchange is one of a number of high-profile business heads to join the Governments Business Funding task force.
These high fliers have been picked to help inspire and influence ideas to help business funding growth.
Tim Breedon, the Chief Exec of Legal and General heads up the task force, they will look at how they can bring alternative funding and financial providers to businesses in the UK. This will also include a range of alternative lending such as Factoring. In essence this is help companies that have big expansion plans in place.
There will be a report by the Budget in March which will show how finance can be freed up for companies.
“We are [here] to explore alternative sources of finance and credit beyond normal bank lending for those UK companies which are not large enough to access public bond markets.
“In practice, this means the overwhelming majority of businesses, from those with turnovers up to £1bn, down to the small and micro-businesses which provide so much of the UK’s employment.
“The starting point for our work needs to be a thorough review of the extent to which access to sustainable and affordable finance may become a greater problem as bank balance sheets reduce in size as capital and liquidity ratios are strengthened and credit is repriced in response to new regulation.
“We also need to understand the extent to which businesses are turning to other sources of finance.”
It’s a positive step for those companies who had doubts about the government task force and will provide a range of resources to those who need some financial support and direction. Many companies still rely on traditional business loans but there is a huge array of alternative financial help available for small to medium enterprises.