Call for transparency in SME lending

Pritchett & Co Limited is backing a call for more transparency in the marketing of financial products to the SME sector.

It follows a campaign by Growth Street – a provider of finance to small businesses – which states that unlike in consumer lending, there is no requirement to advertise an annual percentage rate (APR) to enable businesses to compare deals.

As the Chief Executive of Growth Street explained, commercial finance offered to limited companies was outside the scope of the Financial Conduct Authority (FCA) and so goes unregulated.

James Hastings, director at North Wales based Pritchett & Co Limited, said: “Clearly more needs to be done to help small companies because these are the businesses of tomorrow.”

“Obtaining finance is crucial for SMEs if they are to grow and improve the UK’s productivity and contribute to the economic recovery, so I would like to see more information made available for firms wishing to grow and create jobs. If SMEs are misled, it could have an effect on their profitability, growth prospects, and employment.”

“At Pritchett & Co Limited, we are passionate about helping small businesses and would be delighted to discuss the services we can offer to corporate clients.”

If your SME requires advice about obtaining finance, please contact us at info@pritchettandco.co.uk or call us on 01492 534250.

The author is a director at Pritchett & Co Limited, Chartered Accountants and Chartered Tax Advisers, members of UK200Group with offices throughout the UK and Associates overseas.