Carillion Is Catalyst For SME Finance Shakeup

19th February 2018.

The collapse of construction giant, Carillion, and the resulting mess that it has left behind, has had a resounding impact on many small businesses around the country. If we are to overcome this crisis, as well as avoid the next one, more emphasis needs to be laid on how SMEs are financed and what options are available to them.

Steve Jones, chief executive of UK Finance sees the Carillion crisis as a “catalyst for change”, and insists that banks and small business owners can do more to improve small business prospects. The construction group’s collapse prompted collaborative effort from within the financial sector, with £200 million set aside by banks, and a further £100 million by the British Business Bank. However, these gestures do not go far enough, and recent scandals from various financial institutions have severely damaged the business communities’ trust in traditional banking. Ultimately, what is important for the best interest of SMEs is transparency, a greater understanding of what options are available to them. The understanding that borrowing against their revenue is not the only option.

Here at the Credit Protection Association, we provide services, products, and advice to many small business owners. Rather than offering them money but with excessive interest fees on top, we offer them aid. We provide debt recovery services to help boost their flow and various credit management products to improve their business prospects in the long term.

Steve Jones agrees that transparency needs to be adhered to concerning small business owners. Mr Jones insists that a recommendation has already been made for a more inclusive banking environment, where banks provide feedback to rejected applications and offer advice on how decisions are made.

An independently chaired review has also been proposed, which will look at the way disputes between SME and banks are resolved and work to aid them.

Whether traditional banking mends their ways or not, SMEs will still be at the mercy of the top dogs. With accusations of corporate bullying directed at small and large business relations, small business owners need to know there is another direction they can take. Credit management services is a welcome alternative to traditional routes for finance. Rather than giving you money that you don’t have, we recover money that you forgot you already have!

Here at the Credit Protection Association, we offer our members not only the recovery of long-forgotten cash but financial advice on how to protect it once they have it. Our credit reports and monitoring software ensure you don’t end up working for the next Carillion, and instead set you up for a prosperous future.