Member Article

Banks pledge small business support

Banks have promised to offer greater help to small businesses during the economic downturn but warned they would not support companies that could not survive.

A report by the British Bankers’ Association pledged lenders would be more proactive in contacting businesses they suspect may be struggling and would look to discuss all concerns in person.

It also promised to help customers revise business plans and forecasts where needed and to use business assets as security before personal ones.

There was also a commitment to provide a business account switching service within five days.

But the report also warned that a struggling business that had agreed a rescue plan with a bank would face higher borrowing costs.

“It is not in anyone’s interests for banks to continue to support businesses that cannot survive,” the report added.

This was posted in Bdaily's Members' News section by Ruth Mitchell .