SME finance provider Growth Street, has committed to channelling £60m to Scottish SMEs, in an attempt to help plug a funding gap of over £800m left by the high street banks.
Growth Street research has found that the total overdraft limit available to Scottish SMEs has been on the decline, despite a boom in the number of businesses being registered in the country. It claims this is due to the banks’ increasing reluctance to extend overdrafts to small firms, a trend it says picked up in the wake of the credit crunch.
The business, which has recently launched in Scotland, has long been outspoken on the lack of support the high street banks give small businesses. Its latest pledge to channel £60m into ambitious Scottish SMEs is testament to its ambitious plans for the region.
Greg Carter, CEO of Growth Street said, “The £800m funding gap is a dramatic realisation that overdraft facilities available to businesses in Scotland are in short supply. Scottish businesses face a significant void in their funding, which might result in an everyday working capital squeeze”.
“Growth Street wants to lead the charge to fill the hole left by the banks. As one of the few working capital lending platforms in Scotland, we want to kick off a funding revolution by channeling £60m of funds into SMEs across Scotland”.