Banks are not supporting small business - part 2 (Fylde Liberal Democrats)

Fylde Liberal Democrats <info@fyldelibdems.org.uk>

Banks are not supporting small business - part 2

February 19, 2010 2:21 PM

TV & other mainstream news has been dominated by letters from rival economists about when & how to cut Government spending, and, as usual, the distinctive, sensible & workable, Liberal Democrat view has struggled to be heard. Repairing the economy is not just about cuts. It is also about investment, and a properly functioning financial services sector. Data from the Institute of Directors shows that nearly 60% of businesses seeking bank finance in 2009/10 were rejected by their bank, and that 20% are financing their businesses to some extent with credit cards. The Banks are missing Government lending targets & plead that many business asking for money are not viable. That is a cop out and is NOT what taxpayers rescued the Banks for. One successful business man, turned down by our banks, has got finance from a Belgian Bank and Santander has increased net lending by some 16%. Liberal Democrat Shadow Chancellor Vince Cable said: "Instead of paying themselves large bonuses, the money should be used to strengthen balance sheets and to provide commercial lending to sound and solvent British companies. There is a huge gap between what the banks tell us and the experience of companies on the ground. Large numbers of small and medium sized businesses are still having difficulty in getting credit on reasonable terms."