Banks have asked specialist debt collectors to help lead the recovery of tens of billions of pounds of government-backed small business loans, as they prepare for an expected wave of defaults and fraud cases.
UK Finance, the trade group, is leading discussions to create a centralised utility that will deal with defaults on government-backed bounce back loans. It has contacted several potential outsourcers including London-listed Arrow Global to see if they would have enough capacity to support such a scheme, according to people involved in the discussions.
The task is expected to be too onerous to be handled by a single company because of the large number of small businesses forecast to run into trouble, one of the people added.
Banks …
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