Coalition eases equity finance rules

Small businesses can try to access markets such as the Alternative Investment Market (AIM) as a means of raising capital.

Under the coalition's more relaxed rules, companies will not be required to provide a costly prospectus if they are only seeking equity finance worth up to five million euro (£4.37 million). They will also be able to target more investors - up from 100 to 150.

According to Mark Hoban, financial secretary to the Treasury, this rule relaxation is being applied 12 months earlier than initially planned.

He said: "I'm delighted to announce that the UK is taking the lead in Europe by introducing these deregulatory measures early, saving UK SMEs [small and medium-sized enterprises] £12 million per year.

"Reducing the regulatory burdens faced by business is vital in making the UK the best place in Europe to start, finance and grow a company."

Firms are able to make the most of the rule relaxation from this week.