Funding Xchange has received approval for a government grant to develop a finance portal for users of small business advice platform Enterprise Nation.
The business finance aggregator has received £5m through the government-backed Banking Competition Remedies (BCR) fund to launch Enterprise Nation Finance Portal, which will help small businesses access funding.
It is also being developed with the National Association of Commercial Finance Brokers whose members will have access free of charge.
The BCR scheme was set up by the UK government to distribute £775m from Royal Bank of Scotland as a condition of its state bailout in 2008, to improve competition in banking.
FundingXchange is also working with Shawbrook Bank to develop a real time monitoring tool for intelligently assessing the ability of borrowers to manage repayments.
This ability will be offered to other lenders using the funding.
“We will make a material difference to the ability of many thousands of start-ups and growing small businesses to access the funding that they need at the most competitive pricing,” said Katrin Herrling (pictured), chief executive of Funding Xchange.
“At the same time we will be providing the tools to the banks to enable them to analyse when repayments can be achieved.”
Emma Jones, founder of Enterprise Nation, said the hub will mean that many businesses will now be able to access the finance they need as well as trusted advice on how to manage those funds.