In a bid to bring transparency to the commercial finance market, MPs have called on the government to act to make it mandatory for providers to declare an Annual Percentage Rate (APR) on any finance they offer to SMEs.
An Early Day Motion calling for Government action was tabled in the House of Commons on Wednesday 11 May by Helen Goodman MP, a member of the influential Treasury Select Committee.
Helen Goodman MP commented: “I think it is important that lenders should have to give SMEs a transparent APR figure so that they can properly compare offers and drive a more competitive financial market. It is unfair that SMEs currently work under such a disadvantage. Now is the time to level the playing field and help our SMEs to succeed.”
The EDM has received cross party backing, including Conservative Julian Lewis who is part of the new 2015 intake and is a former financial journalist.
This motion adds further support to the APR4SMEs campaign which was started three months ago by alternative overdraft provider Growth Street, and is backed by the IoD and the Institute of Chartered Practicing Accountants among others, who are calling on all stakeholders to show their support for this critical issue that effects all British businesses.
