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Jul
15th

BANKS SAY NO MORE OFTEN By: Gordon

Banks have adopted a ‘take it or leave it’ approach to small business loans with outright rejection rates rocketing sevenfold since before the financial crisis, a key survey shows.
The bank-funded Business Monitor – which is being used by the Business Department to benchbank the treatment of small businesses by the banks – found that 28pc of firms were turned down when applying for a loan last year.
A similar proportion failed to secure a loan at the end of the lending process, even after some revised their applications.
In contrast, just 4pc of firms said they were met with a flat rejection when applying for a loan or mortgage in 2007.
The independent survey of 5,000 small and medium-sized businesses (SMEs) also found that confidence in the banks is weakening, with just 40pc of the SMEs planning to secure new or to renew existing finance in the next 12 months saying they were confident of succeeding compared with 70pc of those who had applied in the last year.
If you are having issues with your bank in raising funds please contact Haxton Chartered Accountants who may be able to assist

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