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Fintech

Fintech lenders’ admin troubles hold up coronavirus loans scheme

Most of the fintech firms approved under the Coronavirus Business Interruptions Loans Scheme are yet to begin lending

Bars, restaurants and retail have been hard-hit by the coronavirus lockdown, such as these on Old Compton Street in Soho, and many small businesses will need emergency loans to tide them over
Bars, restaurants and retail have been hard-hit by the coronavirus lockdown, such as these on Old Compton Street in Soho, and many small businesses will need emergency loans to tide them over Photo: Getty Images

The UK’s new breed of fintech lenders hoped to do a swifter job than established banks of getting capital to virus-struck businesses — but even after getting the green light from government, most of the new players still cannot pass ‘go’.

Their accreditation to lend to ailing businesses means nothing until they've put in place legal funding structures to provide protection to both the government and the fintech lenders themselves.

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