Recorded 15 October, this webinar focuses on the latest on SME finance issues.
16 Oct 2020, 2 min read
Watch the webinar
Speakers:
- Deborah Fraser, Director – Regions, CBI (Chair)
- Chris Wilford, Head of Financial Services Policy, CBI
- David Beardmore, Ecosystem Development Director, Open Banking
- Chris Matthews, CEO, Alevere and Silverlink Clinics
Overview:
Chris Wilford:
- The government’s guarantee loan schemes, the availability of insurance and the finance landscape are intertwined. The use of technology and innovation and government support are all critical.
- The CBI is in close discussion with government and the financial sector on the extension to loan repayment terms announced as part of the Winter Economy Plan
- Trade credit insurance underpins many SME transactions and helps with asset and invoice finance which many SMEs use.
- The CBI is calling for the government backstop to be extended to June 2021.
David Beardmore:
- The Competition Markets Authority (CMA) has previously reported that current accounts are not competitive
- Third party providers are now available, which provide tools and services to help businesses make better use of traditional bank accounts
- Established players are now championing open banking, as well as alternative lenders
- Open banking can help SMEs in three key areas: resilience, productivity and profitability
- David predicts that online banking will drive a radical transformation of an online payment journey, as part of ‘bank transfer’ online payment option.
Chris Matthews:
- They now use the ‘Zero’ accounting package, replacing a traditional high-street bank account. And have never looked back
- This was invaluable when they needed to access loans at start of lockdown, as lenders were able to make an instant decision based on their access to business accounts. As a result, they were able to access a six-figure loan within 48 hours of their application
- All accounts are connected – no payment leaves the business without him knowing about it
- He has provided access to view his accounts to a major French supplier, who is then reassured enough to supply goods.