Asset Finance Connect (AFC) and Finativ will be holding a roundtable for leading asset finance firms to consider how to respond to the UK Government’s consultation on increasing finance to SMEs.
The roundtable which takes place on April 3rd, will be attended by asset finance leaders from NatWest, Novuna, Aldermore, Propel, Simply, United Trust Bank, Anglo Scottish, Allica, Arkle, Haydock, Cambridge and Counties, Time Finance, Tower and Investec – all community members of Asset Finance Connect. The event will be supported by AFC legal advisers, Shoosmiths, and takes place at Shoosmiths’ office in the City. In-depth discussions will be led by Christian Roelofs CEO of Finativ followed by a networking lunch.
Topics to be considered will include:
- What assistance is the UK Government providing to the asset finance industry (eg ENABLE programme). What works well, where are the problems?
- What is the state of the SME lending market and is it well understood? What are the problems in that market that need to be solved?
- What do we believe the solutions are? What role can/should Government play?
- What are the key communications that the industry needs to make (eg what does UK government need to know)? What are the topics we think should be debated by the industry at the AFC Conference in June?
“The SME market is not really a single marketplace at all – it’s a complex, diverse group of businesses with lots of different needs,” said Edward Peck, CEO of AFC.
“Any intervention by UK government needs to take this into account. If the government wants to prioritise growth it needs to focus comprehensively on the whole of the existing market and not just one segment (big banks and near prime lenders all have a role to play); to channel capital to the highest-use opportunities (economic potential should trump other objectives); and they need to reduce the distractions (too much of lenders tech budgets and management time is currently being used up on regulation and compliance instead of on innovation and infrastructure).”
“A key challenge is to identify where the commercial opportunities really are to drive economic growth through SMEs,” said Christian Roelofs, CEO of Finativ.
“Should the Government simply intervene to make more funding available (increasing supply of wholesale funding for example) or to reduce the risk (taking a share in credit risk, for example) or should they focus on making the existing free market work better supporting innovation and sustainable change? It will be interesting to see how members weigh up the benefits and costs of the alternatives,” he added.
The AFC CEO Forum for Asset Finance Corporate Members will meet on April 3rd at Shoosmiths. If you would like more details of the forum or AFC’s corporate membership, contact Edward Peck at edwardpeck@assetfinanceconnect.com
