May 26, 2024

Entrepreneur seeks to reform The British Business Bank

High Street banks are not opening new business accounts. Entrepreneur and Co-founder of MachFast, Michael Rossman, has launched a government petition and an app to help new companies during the COVID-19 pandemic.

Currently, the British Business Bank is not an operating bank. It can not lend directly to businesses and it can not open business current accounts. 

Mr. Rossman is therefore petitioning the government to:

  • Make the British Business Bank a real bank. 
  • Enable the British Business Bank to offer small businesses current accounts and offer direct lending. 

The need for reform has been clearly highlighted by the impact of COVID-19, with recent reports that High Street banks are currently rejecting business bank account applications as they appear overwhelmed.

Now is the perfect time for the British Business Bank to step in and help.

Speaking about the issue, Mr Rossman observed “The British Business Bank should do what it says on the tin – ‘Business Banking’. Major High Street Banks appear overwhelmed at the most crucial time for the economy. We want businesses to thrive and have proper access to the financial system. We are doing our part as innovators by launching an app to help solve this problem, now is the time the government should step up too.”

Mike Cherry, national chairman of the Federation of Small Businesses, recently spoke to the BBC in their coverage of this issue. Mr Cherry stated “We need to see those who are starting-up and seeking to open a commercial account, and those who are established and seeking a bounce back, given guaranteed routes through which they can make applications that will be assessed swiftly.” 

This petition aims to protect and support small UK businesses by:

  • Allowing the British Business Bank to offer startup business accounts
  • Taking the pressure off the High Street Banks to provide accounts
  • Giving small business owners more opportunities to open an account

Beyond the petition, Mr. Rossman’s company recently launched a simple app, MachFast. The app registers new companies in minutes and opens current accounts using open banking. 

Sign the petition here: