Sunday, September 13, 2009

Comment on Banks hammer small firms

There is a serious disparity between banks' marketing and publicity departments and what bank managers are able to do on the 'floor'. The reality between banking hall and press relesase. Natwest and Lloyds managers have told me they are unable to lend, extend facilities or support to catering businesses of any kind. The sector is not being touched by bankers' with barge poles FULL STOP unless there is no need for the businesses to raise financial support in the first place. And I know of an RBS manager who's easily EXCEEDING his internal lending targets for new business but is getting EVERY application knocked back by his credit departments.

It is absolutely clear that banks take advantage of small business in levying punitive charges wherever possible and do NOT back small business and, particularly, will not support the restaurant/catering/ pub trade currently unless watertight financial security underpins the banks' exposure.

This needs to be admitted to finally, accepted as reality and practical steps be taken about it. Banks must be FORCED to support small business rather than just be encouraged. Banks have been bailed out to the tune of billions by the taxpayer; banks have been TOLD to support small business and the catering sector and have been given loan guarantee securities and simply used the security to strengthen their own position and get their balance sheets looking full.

It's despicable and is holding up recovery of the economy.

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