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Amigo Loans Comments On Lord Young’s Report – Four In Five Micro Businesses Aren’T Aware Of Funding Options Available

Press Release - 13 May 2013

James Benamor, founder and CEO of Amigo Loans comments: “While Lord Young’s report out today calling for the expansion of the start-up loan scheme and further Government contracts to micro businesses, will give more entrepreneurs the help they need, we’re sceptical to whether it will really make a difference. Our latest research shows that on average micro businesses need just £2,1431 to set up, but many have struggled to get this funding and resorted to more dangerous alternative methods, such as payday loans. Just 20% of micro-businesses were funded through a bank loan and one in six resorted to a payday loan to fund their business. There needs to be more noise within the industry about the alternative forms of business funding available, particularly as a staggering four in five micro businesses aren’t aware of the lending options available to them. We are calling for better education on funding alternatives for small businesses and entrepreneurs looking to start up – we want to see more businesses opening and staying open.

“The UK desperately needs a return to the old-fashioned values of lending from credit unions and alternative lenders such as ourselves. At Amigo Loans we offer an old-fashioned lending model, widely used by banks before the local bank service was replaced by computerised credit scoring. Our lending is based on trust, personal endorsement and one-to-one interviews. An Amigo guarantor loan gives borrowers the chance to rebuild their credit score, instead of damaging it through the use of payday loans.”

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