Small businesses want an APR

Every day at Growth Street we see SMEs struggle to find honest rates on their commercial finance, making it increasingly apparent that SMEs appreciate and want greater transparency.

Kafeteria cafe

We have not only created an APR calculator for businesses to see how much they are actually paying on their finance, but we want to actively voice concerns on behalf of the SME community too. This is why we started the APR4SMEs campaign. We believe that banks and alternative finance providers should display the APR of their commercial finance products, without hiding any of the costs. It should be implemented in the law and included in the Financial Planning Practice Standards.

Simply put, SMEs should have a right to know what they are paying on an annual basis, including fees and interest. Currently SMEs are tricked by low daily, weekly or monthly headline rates.

Shoreditch Grind

The UK government needs to start recognising that small businesses are not supported properly, if at all. Small enterprises make up over 90% of UK businesses, resulting in a huge contribution to the UK economy. Increased transparency and competition within SME finance – in turn helping SMEs grow - is therefore in the nation’s best interest.

Isn’t it time that the government stopped pandering to large corporations (who don’t even pay their taxes), and focus on helping the small businesses that make up the back bone of this country?

Good and Proper Tea

An APR for SME finance products is the solution. There are many finance providers fighting this on uncertain grounds, with shaky arguments backing up their points. Growth Street believes that British SMEs deserve transparency and if consumers require protection, then why shouldn’t people in small businesses. As regulation stands now, finance providers are allowed to treat SMEs as sophisticated customers, making a profit off the blanks missing in the business owner’s knowledge.


To put it simply, the APR4SMEs campaign is fighting for:

·      You (the business owner)

·      Transparency on all fees and interest within commercial finance

·      A general and well understood means of calculating financial cost

Growth Street believes that all businesses should be able to access finance that is flexible, transparent and fairly priced. Growth Street therefore voluntarily publishes the APR of its business overdraft product, and urges all commercial finance providers to do the same. 

We know this won’t happen straight away, but with your help we believe we can make our voices heard. You can sign our petition here, and you can lobby your local MP here.

Hill and Szork
Written on in News