FSB launches financial technology platform for small businesses
The Federation of Small Businesses (FSB) has launched a new fintech platform to provide small businesses and self-employed people with more access to funding.
The FSB Funding Platform, which is regulated by the Financial Conduct Authority (FCA) and developed by business finance platform Finpoint, will help potential borrowers get access to funding by matching them with more than 100 providers.
The platform will help businesses and self-employed people to fund business growth, with research from a pilot of the platform showing many firms are being held back as a result of high costs.
The average amount a small business applies for from an alternative finance provider was found to be £39,000, with equipment purchases and working capital for short-term operations or late payments being among the top reasons for businesses seeking finance.
A wide range of funding options will be provided for businesses and self-employed communities through the platform. This includes peer-to-peer lending, with Assetz Capital, RateSetter, and Funding Circle.
Commenting on the launch of the platform and how it will benefit small businesses, FSB London Chair Michael Lassman said: “We’re pleased to be able to offer this exciting platform to our member base. Although it’s harnessing the latest innovations in tech it offers a very simple way to access finance, as well as access to human financial advisers. It will transform the business funding market and is a real step change for small businesses.”