NAFCB calls for SME housebuilder support and IR35 reform in Spring Budget wishlist

In its wishlist published today, the association referred to its annual survey 2022 which found that 29 per cent of small businesses that had secured finance through a NACFB intermediary were previously turned away elsewhere. 

Additionally, two fifths of lenders surveyed did not have an official referral process to direct unsuccessful applicants. 

Pointing to the £45bn in commercial borrowing to small businesses that the body’s brokers generated, the NACFB said encouraging commercial lenders to refer to a centralised system would support more SMEs. 

Norman Chambers (pictured), managing director of the NACFB, said: “It will be a nervous wait for many businesses. Accessing finance is key to both survival and growth and our survey has found that lenders are still declining loan applications because they view a sector as too risky.  

“An overhaul of the Bank Referral Scheme which gives intermediaries a central role in ensuring SMEs can achieve their funding ambitions will be good for business, Britain, and the economy as a whole.” 

Reform IR35 for more flexible working

The NAFCB also proposed a reformation of the IR35 rules saying that the current requirements held back flexible working as it made it harder to maintain self-employed status. It also suggested helping small businesses to transition to sustainable energy sources and an initiative to encourage energy efficient investments. 

Paul Goodman, chair of the NACFB, added: “With many lenders withdrawing their high-street presence, commercial finance brokers have firmly stepped into the role of the modern-day bank manager; but with the added benefit of providing a wider array of funding solutions to clients.  

“Placing intermediaries at the heart of the Bank Referral Scheme opens access to finance and offers a lifeline to those that really need it.”