Beyond the banks

Tim Breedon's review of non-bank finance has endorsed two of the three recommendations in our Beyond the Banks report, and has credited us as 'early advocates' of the big idea.

The main recommendations from the taskforce's report to Business Secretary Vince Cable are set out below, and the ones in bold are recommendations which were put forward in our Beyond the Banks report.

1. The creation of an alternative point of contact to the banks for information about raising finance: a second port of call. Industry to establish a kitemarked Business Finance Advice network.
2. A single brand and delivery agency to increase awareness and enhance delivery of the government's range of SME finance programmes drawing on international examples such as Germany's KfW.
3. Opening up access to capital markets funding for smaller companies through the creation of a new aggregation agency to bundle SME loans.
4. An in-depth feasibility study led by AFME is the first step in this process. Programmes also to standardise and promote private placements, mezzanine and export finance, and encourage retail investment.
5. Stimulation of the retail investor base for public bonds;
6. Markets for innovative products including mezzanine finance and peer-to-peer lending to be considered for investment by the Government's Business Finance Partnership.
7. Reinforcement of prompt payment, led by companies in the Government's supply chain. Support for greater use of invoice discounting to fund payment gaps, including use of electronic trading platforms.
8. Encouragement for large businesses to utilise supply chain financing to invest in smaller suppliers.
9. Government and industry to review impact of international prudential regulation such as bank and insurance capital rules on the supply of SME finance.

Research has shown that fast-growing, innovative businesses hold the key to economic growth.

But it is hard to expand a business without access to finance. And despite intense negotiations between the government and the banks, for most of Britain's small and medium-sized businesses, the credit crunch is still in full effect.

NESTA has joined forces with the Daily Telegraph and Sam Gyimah MP to look at how new ways of financing small businesses can help. We will be working with entrepreneurs, businesses and financiers to identify new ways to get finance flowing to the best companies.

Between now and November 2011, we are aiming to identify the innovations that are making a difference, and come up with concrete ways that government, regulators, and financial institutions can help. If you are interested in taking part, we would like to hear from you: email us at financeconsulation@nesta.org.uk.

Here, we'll keep you updated on the progress of the project:

Timelines
We'll set out all the meetings and consultations so you can stay in touch with our progress.

Interesting links and resources
We'll give you a steady flow of useful ideas and resources to keep you informed.

Stay in touch
We'll post regular updates on Twitter using the hashtag #beyondthebanks. Follow @nesta_uk to stay in touch with the project.