Am I being a little cynical here? Whilst I agree that commercial finance should come under the scope of the Financial Conduct Authority (and didn't realise it wasn't already), surely business owners and directors have to do is ask for the details and then they will be able to compare deals. They may not be able to compare apples with apples (how often is that really possible in small business?), but they will be able to make an informed decision based on the information available. Am I being cynical?
Currently, commercial finance for limited companies – unlike consumer lending – falls outside the scope of the Financial Conduct Authority and as such, is unregulated. As a result, commercial lenders don’t have to disclose the annual percentage rate (APR), making it difficult for small firms to know what they’re getting and to compare deals. The campaign includes a submission to HM Treasury and a petition calling on Chancellor George Osborne to make it a legal requirement for all commercial finance to carry APR within his budget statement next month.
