Asset finance houses are to be brought into the Funding for Lending Scheme (FLS), which has previously been limited to more traditional lenders, and it will be extended to 2015, a year longer than intended life span.
Osborne hopes that bringing in asset based lending companies, who provide £20bn a year to British small businesses, will drive money into the hands of entrepreneurs.
How will it work?
Full details of when the funding will be available or how it will be accessed are yet to emerge, but we recommend talking to asset based lenders now, so that they know what funding you are looking for when the £80bn is opened up.
Seen as the main alternative to traditional bank lending, asset finance keeps smaller companies across the country growing by allowing them to borrow against invoices or machinery, increasing their cash flow.
The Chancellor hopes that opening up the FLS to these institutions will result in small businesses investing more money in growth.
Right now, the Government is relying on entrepreneurs to push forward and create growth as the UK was recently rocked by news of low growth and credit degrading.
We will keep you updated when more news of how you can access the £80bn in funding is revealed.
In a further development, Osborne also announced banks can now access ten times more low interest funding in return for the money they lend to small businesses.
This is a huge incentive for banks to be injecting money into British businesses. We recommend you look again at bank financing, even if you have be turned down in the past.
The Government clearly agree with Smarta that small businesses are going to have a crucial role to play in getting the country growing again. It's time to find out how that can work for you.