Small Biz Act makes access to funding 'easier'

The Small Business Act is meant to improve access to finance, create fairer conditions for pub landlords and increasing transparency on payment practices.

The act contains a large number of clauses, including:

- Opening up access to small business credit data, potentially making it easier to get a loan

- Banks now have to pass on details to alternative lenders of businesses they have turned down for a loan

- Speeding up cheque processing times through ‘cheque imaging’

- More transparency on payment practices by large buyers

- New commitment to cut red tape

- Appointing a Small Business Appeals Champion to represent SMEs

- New Pubs Code improving conditions for landlords tied to breweries

- Increased export finance available for firms selling overseas

The government said the Act provided opportunities for the UK’s 5 million small businesses to “innovate, grow and create jobs”.

Business secretary Vince Cable said: “Small businesses provide jobs for millions of people across the country and are driving the economic recovery.

“The Small Business Act will create the right environment for small businesses to continue to thrive by giving them greater access to finance to help them innovate and grow, and make it easier for them to export goods and services made in Britain.

“The Bill’s measures also mean there is nowhere to hide for firms who do not play by the rules, whether by abusing zero hours contracts or not paying the minimum wage.”

Other measures going live this week include banning exclusivity clauses in zero hours contract which prevent employees working for other employers and increasing maximum fines for businesses that fail to pay the minimum wage.

Another new rule streamlines insolvency law to take out some of the costs and regulates insolvency practitioners.