The Federation of Small Businesses (FSB) has said that removing barriers to self-employed individuals accessing mortgages and retirement savings could significantly boost entrepreneurship and stimulate UK economic growth.
Tina McKenzie, FSB’s policy chairwoman, said: “By solving the finance conundrum too many entrepreneurs find themselves in, we can help to unlock the growth we need to get the economy on track.”.
David Raw, managing director of commercial finance at UK Finance said: “The banking and finance industry supports millions of SMEs and entrepreneurs across the country.
The FSB also raises concerns about the excessive use of personal guarantees for business loans, arguing that this practice stifles growth by discouraging risk-taking among entrepreneurs.
It also claimed that lenders can overuse requests for personal guarantees, which can have a chilling effect on the economy, causing limited company directors to put personal assets such as their homes on the line when taking on a loan.
