According to Real Business – Ten years ago, a small to medium-sized business looking to expand would have visited its local bank branch in what was usually a straightforward process. Today, that once dependable source of funding isn’t what it used to be. Regulatory capital requirements make it all but impossible for banks to lend money to SMEs irrespective of their growth potential.

“The cost to a bank of underwriting a loan for £100 million is roughly the same as lending out £1 million. Banks ultimately want to keep their shareholders happy and they are looking to deliver and maximise their return on equity by focusing their lending to the larger corporate customers,” explains Ayan Mitra, CEO and founder of CODE Investing, one of the UK’s leading institutional debt finance platforms.

Read More here Real Business / Code Investing