London businesswoman Nicola Horlick is planning to start a crowdfunding business named Money&Co early next year that would help businesses to source financing directly from investors, bypassing banks.
Horlick will become chief executive officer of the business that will operate as a website, Money&Co said in a statement, distributed via e-mail by MHP Communications.
“It is a smarter way for businesses to get the capital they need and for people to get a better return on their cash,” Horlick said in the statement. “At the moment, banks are not doing enough for credit-worthy businesses.”
Prime Minister David Cameron’s government and the Bank of England have sought to spur lending to companies after the financial crisis led to a credit freeze. “Access to finance is a significant and enduring problem for many small and medium-sized businesses,” the National Audit Office said in a report on Nov. 1. Those may need an extra 22 billion pounds ($35 billion) of finance by 2017 on top of existing funding sources, the NAO said.
The non-bank and alternative finance sector will provide 12.3 billion pounds of loans within a decade, Money&Co said, citing an estimate by innovation charity Nesta.