Partner Article

Banks failing to award finance sensibly, say SMEs

Almost 90% of SMEs in the UK believe that banks fail to use common sense when deciding on whether to grant business loan applications.

The study of over 800 SMEs by Shawbrook Bank found that despite continued calls for banks to help out small businesses, many felt that they were doing little to make borrowing easier.

Owen Woodley, CEO of Shawbrook Bank, said: “At a time when SMEs should be given all the help they need to grow and succeed, it’s worrying that so many feel they are up against a loan application system that is unclear and obstructive.

“Having access to the right finance at the right time is vital for an expanding small business - and so is having a straightforward and efficient lending process.

“It’s all very well for a bank to say the money for SMEs is there to lend, but if the process is bureaucratic and inflexible it means nothing but lost opportunities and slowed growth.”

45% of respondents felt banks were too bureaucratic when dealing with small businesses.

Shawbrook Bank specialises in lending and savings products to SMEs and individuals, and distribute through a broker rather than a branch network, streamlining their approach.

This was posted in Bdaily's Members' News section by Tom Keighley .