Small businesses given credit ajudicator
26 March 2010
Steven Jackson (about the author)
The government is to create a credit adjudicator that will enable small businesses to appeal a bank’s decision to refuse them a loan.
“There are still companies who are being unfairly denied credit and feel that they are powerless to challenge the decision. I want to change this position and give them the right to have their credit complaints examined,” said Chancellor Alistair Darling.
Businesses welcomed the move, along with other measures to support the sector announced in Wednesday’s budget.
“If a business gets a “no” it should be able to appeal — the cards are stacked in the banks’ favour,” said Stephen Alambritis, spokesman for the Federation of Small Businesses.
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A more proactive view
Over the next year RBS and Lloyds must provide a total of 94 billion pounds of new business loans — nearly half to small and medium-sized enterprises..
Steven Jackson of beatmydebt.com welcomed the initative. "Despite the claims of the banks and BBA (British Banking Association) the experiance at grass roots level is many small businesses are struggling to get the credit they need to grow. Banks have to be encouraged to take a more proactive view in supporting small business" he said.
Getting banks to lend freely again is seen as crucial to engineering a sustainable economic recovery after an 18-month recession which wiped about six percent off output.
Source: Reuters 
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