Santander UK (SAN.MC) will become the first British bank to refer rejected applicants for loans to an alternative finance provider, a move its rivals could be forced to follow as Britain looks to boost lending to small businesses. Britain's biggest banks have been accused of failing to provide sufficient credit to small and medium-sized enterprises (SMEs) and the government is considering making it compulsory for them to direct failed loan applicants to alternative institutions, such as peer-to-peer lenders. Santander said recently it would refer some of its SME customers to Funding Circle, one of Britain's biggest online lending platforms, in cases where it believed the peer-to-peer lender was "better placed to help".