“The CMA have rightly proposed to make the disclosure of APR mandatory on certain aspects of SME lending in order to improve competition in the commercial finance market. We hope the final report not only confirms this remedy, but also increases the suggested scope to ensure maximum benefit for UK businesses.
“Lending to limited companies in the UK is currently an unregulated activity. There is therefore no requirement for commercial finance providers to disclose APR on finance products targeted to SMEs. This makes it difficult for SMEs to compare prices, reduces competition, and limits economic growth.
“Making APR mandatory is therefore game-changing for the industry and for SMEs themselves. This is why Growth Street started the APR4SMEs campaign earlier this year and we are grateful for the significant stakeholder support this issue has received to date, including the Institute of Directors and members of the Treasury Select Committee. This is an important first step to improving the terms on which SME can access finance services, and core to our mission at Growth Street where we are focused on building better business banking.”