Growth Street launches only P2P overdraft for SMEs
21 September 2016 | 2150 views | 0
Source: Growth Street
Businesses investing excess cash via Growth Street can now earn up to 6.5% AER, outstripping the minimal rates offered by high street banks on business saving accounts.
The rate cut recently announced by the Bank of England has compounded the misery faced by businesses that earn minimal interest on their savings. Many firms have been forced into building up cash reserves due to the radical reduction in bank overdraft lending, but get very little in return due to rates being at record lows.
Furthermore, the CMA's final report into business banking services has shown that there is just not enough competition and that a series of remedies are needed to rectify the stranglehold banks have on business finances.
This ‘perfect storm’ of poor high street interest rates coupled with a lack of real competition, means that there is a place for alternative finance providers to offer SMEs real returns. Growth Street is now providing firms with this opportunity to earn a better return on any excess cash, by creating a marketplace that connects businesses that want to lend, with businesses that want to borrow.
James Sherwin-Smith, CEO at Growth Street, comments: "In this post Brexit environment, it is essential that businesses have access to competitive financial solutions that support their endeavours. We are therefore delighted to open our marketplace to serve the needs of businesses looking for a better deal on their excess cash, and further support the growing number of firms looking for finance on better terms than the incumbents can provide."